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c) The price of clothing (P) in a competitive equilibrium is determined by the point where the total demand for clothing (sum of Lacy and
c) The price of clothing (P) in a competitive equilibrium is determined by the point where the total demand for clothing (sum of Lacy and Roy's individual demands for clothing at price P) equals the total supply of clothing in the economy. This price ensures that the market clears, meaning all available clothing is bought and sold
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Economics
Authors: Campbell R. McConnell, Stanley L. Brue, Sean M. Flynn
18th edition
978-0077413798, 0-07-336880-6, 77413792, 978-0-07-33688, 978-0073375694
