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Suppose that the following graph shows a free market equilibrium, with QE as the equilibrium quantity. PRICE QUANTITY Demand Supply Q E For an output
Suppose that the following graph shows a free market equilibrium, with QE
as the equilibrium quantity.
PRICE
QUANTITY
Demand
Supply
Q
E
For an output level below QE
the value of a unit to a buyer is the cost of a unit to a seller.
Suppose a firm that produces for this market is able to influence the market price, which leads to an outcome that differs from the free market equilibrium shown on the previous graph. Such a situation is characterized by which is an example of
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