How does supply and demand inform the choices of consumers and business owners?

1 answer:

6 0

<span>In the sale of goods and services, price is determined by the interaction between supply and demand. In a graph, the point where the supply curve and demand curve intersect is called the equilibrium point. This point corresponds to the equilibrium price, the one a business should seek to charge. If suppliers charge a price higher than equilibrium a surplus will result. If they charge less a shortage will result</span>

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