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Unformatted text preview: price, suppliers will supply more of that product. Equilibrium price is where the supply curve and demand curve intersect for one particular product. A supplier selling something at an outrageous price would not have many sales. If the seller lowered the prices then more people would buy the product, creating more profits. After a equilibrium price has been established, prices are determined by market price. The demand for a product, the quantity demanded, and the price people are willing to pay would be one half of the market price. The other half would be how much suppliers are willing to sell a product for, in what quantity, and at what price. Together suppliers and buyers determine the market prices based upon meeting the best interests of each. Works Cited Nickels, McHugh, and McHugh. Understanding Business 7e. The McGraw-Hill Companies, 2004...
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This note was uploaded on 12/08/2009 for the course BUSN BUSN1115 taught by Professor Forgot during the Spring '08 term at DeVry Chicago.
- Spring '08
- Supply And Demand