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A: The answer is - A.higher than the one to serve the domestic market
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A: Solution given below,
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A: Elasticity measures the responsiveness of quantity demanded with respect to change in price.
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A:
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A: As given Consumption function is given as C = 60+0.75Y as we know at equilibrium Y = C+I
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A: Disclaimer :- as you posted Multipart questions we are supposed to solve the first 3 questions only ...
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A: Answer -
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A: Income of the individual = 1500 Price of X = 75 Price of Y = 50
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A: The correct answer is given in the second step.
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