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Addrisi Pasta is currently in equilibrium where they supply 50,000 one-pound boxes of spaghetti at a price of $1.00 per box. The price elasticity of demand for Addrisi Pasta is 1.28 and the price elasticity of supply for the pasta is 0.86. This quarter, demand for the pasta has increased by 8%.
The new equilibrium price will be:
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