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EC101 BB & EE / ManoveLecture 5: Supply & DemandSpecializationp 1EC101 BB & EE / ManoveSupply and DemandWe’ve discussed voluntary exchangein 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 decidewhatandhow muchexplain how people decide and to buy and sell…Supply & Demandp 2and enables us to predict what the price will be.
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