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In: Economics

Suppose the own price elasticity of demand for milk is -0.75. (a) What happens to quantity...

Suppose the own price elasticity of demand for milk is -0.75.

(a) What happens to quantity demanded and total revenue if the price increased by 10%?

(b) If the own price elasticity of supply is -1.5, who would be more affected by a 50 cent tax on milk, collected from sellers?

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