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Question: the following diagram represents the market for butter for each of...

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The following diagram represents the market for butter.

Assessed2Picture1.png

For each of the following scenarios, determine the effect on the equilibrium price and the equilibrium quantity in the market for butter.

(b) A new medical report is released suggesting that butter is more unhealthy than previously thought. The equilibrium price

a) increase

b) decrease

and the equilibrium quantity

a) increase

b) decrease

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