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Supply and demand is a fundamental element of Economics. We know that when the price of an item increases, then the demand will decrease. This is the Law of Demand: The higher the price, the smaller the quantity demanded, ceteris paribus (O'Sullivan & Sheffrin, 2001). Basic economics is easier to understand if you put it into that linear perspective: Scarcity equals fluctuating supply, which equals fluctuating demand...
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Supply and demand is a fundamental element of Economics. We know that when the price of an item increases, then the demand will decrease. This is the Law of Demand: The higher the price, the smaller the quantity demanded, ceteris paribus (O'Sullivan & Sheffrin, 2001). Basic economics is easier to understand if you put it into that linear perspective: Scarcity equals fluctuating supply, which equals fluctuating demand...
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