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in highly competitive markets the price of an item changes because of a shift in the demand curve or a shift in the supply curve.
in highly competitive markets the price of an item changes because of a shift in the demand curve or a shift in the supply curve. Suppose the price of coffee in world markets falls by 10%. Is there a way to find out whether the fall in the price is due to a change in the demand or the supply? What other piece of information would you need to answer the question?
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