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In the market for cotton, suppose the equilibrium price is $10 per ton and the equilibrium quantity is 100 tons. If the government then imposes a price support of $20 per ton, marginal cost

In the market for cotton, suppose the equilibrium price is $10 per ton and the equilibrium quantity is 100 tons. If the government then imposes a price support of $20 per ton,

   

marginal cost decreases.

   

the market price decreases.

   

the market price increases.

   

consumer surplus increases.

   

the deadweight loss is decreased.

Aug 17 2021 View more View Less

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