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Business, 13.03.2020 04:54 roadrnr5183

When a subsidy was in place, the price that Egyptian farmers received for their cotton was about $556 per bale, and these farmers produce about 525,000 bales per year. However, when the subsidies were removed, the cotton price received by farmers promptly dropped to $426 per bale and Egyptian farmers responded by reducing the amount of cotton produced, to 315,000 bales per year. The short-run price elasticity of supply was 1.92. We can expect that the long-run price elasticity of supply will be

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When a subsidy was in place, the price that Egyptian farmers received for their cotton was about $55...
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