What are the basic principles of supply and demand in a market economy?
Answer 1
Cole Cherry
The basic principles of supply and demand in a market economy involve the relationship between the quantity of a good or service that producers are willing to sell at various prices and the quantity that consumers are willing to buy. When demand exceeds supply, prices tend to rise, and when supply exceeds demand, prices tend to fall. Equilibrium is achieved when the quantity supplied equals the quantity demanded, leading to a stable market price.
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