4. Market prices will bring the conflicting forces of supply and demand into balance. If the quantity

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4. Market prices will bring the conflicting forces of supply and demand into balance. If the quantity supplied to the market by producers exceeds the quantity demanded by consumers, price will decline until the excess supply is eliminated. On the other hand, if the quantity demanded by consumers exceeds the quantity supplied by producers, price will rise until the excess demand is eliminated.

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Economics Private And Public Choice

ISBN: 9780123110404

2nd Edition

Authors: James D Gwartney; Richard Stroup; A H Studenmund

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