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Thursday, February 18, 2016

Assignment 2 Elasticity of Supply

 February 18, 2016     No comments   


Suppose an economist stated that “food stamps serve only to drive food prices higher, not increase the quantity of food available to the poor.” For this statement to be true, identify what the elasticity of supply would have to be and explain why. In addition, predict what the elasticity of supply would have to be for a food stamp program to increase the availability of food to the poor with no price increase and explain why.
You must develop a two- to three-page paper (not including title and reference pages) and be formatted according to APA style guidelines as outlined in the Ashford Writing Center. You need to use two scholarly sources, in addition to the textbook, to support your assertions.
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