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Unformatted text preview: workings of supply and demand. Supply and demand are the two words that economists use most oftenand for good reason. Supply and demand are the forces that make market economies work. They determine the quantity of each good produced and the price at which it is sold. If you want to know how any event or policy will affect the economy, you must think first about how it will affect supply and demand. This chapter introduces the theory of supply and demand. It considers how buyers and sellers behave and how they interact with one another. It shows how T H E M A R K E T F O R C E S O F S U P P L Y A N D D E M A N D 65...
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This note was uploaded on 07/30/2010 for the course ECON 120 taught by Professor Abijian during the Spring '10 term at Mesa CC.
- Spring '10