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Exercise 1: Suppose that as a result of an improvement in technology the producer's supply change from: (S1) Qs=-40+20P to (S2) Qs=-10+20P 1. From S1 to S2, Supply increase…

Exercise 1: Suppose that as a result of an improvement in technology the producer's supply change from: (S1) Qs=-40+20P to (S2) Qs=-10+20P 1. From S1 to S2, Supply increase…