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2. Assume that the price of Kellogg's Rice Krispies increases from $4 to $5 a box. This increase in price has increased the number of boxes of Rice Krispies produced from 10,000 to 14,000. a. What is the price elasticity of supply (please show all of your calculations)? b. Is Kellogg's sensitive or insensitive to the change in price? How do you know?

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