Consider a market for a specific raw material where the initial equilibrium price is $10 and the equilibrium quantity is 100 units. The demand curve shows that at a quantity of 60 units, consumers are willing to pay $18, and at a quantity of 80 units, they are willing to pay $14. The original supply curve shows that producers are willing to supply 60 units at a price of $6. A group of major producers forms a cartel and agrees to collectively limit their total output to 60 units. What will be the new market price after this supply restriction is implemented?
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Ch.8 Supply and demand: Markets with many buyers and sellers - The Economy 2.0 Microeconomics @ CORE Econ
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Consider a market for a specific raw material where the initial equilibrium price is $10 and the equilibrium quantity is 100 units. The demand curve shows that at a quantity of 60 units, consumers are willing to pay $18, and at a quantity of 80 units, they are willing to pay $14. The original supply curve shows that producers are willing to supply 60 units at a price of $6. A group of major producers forms a cartel and agrees to collectively limit their total output to 60 units. What will be the new market price after this supply restriction is implemented?
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