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What actions could a government take in order to keep the price above market equilibrium?
There are four basic possibilities here;
1) Minimum price;
2) A tax on the good;
3) Any form of price support scheme including government purchasing of the good; and
4) Government controls limiting supply.
(i) When the demand function is 2Q - 24 + 3P = 0, find the marginal revenue when Q=3. (ii) Given the demand function 0.1Q - 10 +0.2P + 0.02P2 =0, calculate the price elasticity of
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