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Sunday, 23 June 2013 21:25

Demand and Supply: Price Determination

Demand and Supply: Price Determination

Demand and supply are the foundation of AS micro and form part of unit 1 in the AQA specification. Demand is determined by the consumers' ability and willingness to pay for a good or service. Supply by producers' costs. Where these intersect determines the equilibrium or market clearing price.

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