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The demand and supply curves for the U.S. market for coffee are given by D(p)= 600 – 2p and S(p)=300 + 4p.
1. Suppose engineers invent a cheap, organic pesticide that lowers costs to coffee producers. Assume this cost-saving measure converts to $45 USD. Write a function for a new supply curve for coffee in the U.S. market.
2. Solve algebraically to find the new equilibrium price and quantity. Again be sure to show all work; label and box your answer.
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