EC101sOutlines05Supply&Demand - EC101 BB EE Manove...

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EC101 BB & EE / Manove Lecture 5: Supply & Demand Specialization p 1 EC101 BB & EE / Manove Supply and Demand We’ve discussed voluntary exchange in the free- market model. We’ve discussed when people would want to exchange goods (or sell and buy),… but we haven’t analyzed how much or how many the would want to sell or buy. Now we examine supply & demand , which helps explain how people decide what and how much explain how people decide and to buy and sell Supply & Demand p 2 and enables us to predict what the price will be.
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