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Particular mix of price and quantity is selected ...

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Law of Demand indicates that there is an inverse relationship between price and quantity, why does it matter which particular mix of price and quantity is selected?

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The inverse relationship based on the law of demand deals with price and quantity, and also deals with elastic and inelastic goods. As a price rises, the quantity that consumers and businesses alike are willing to purchase typically declines. People are less likely to spend an increased amount of money on the same good, assuming that there have been no improvements or other ...

Solution Summary

The solution discusses why it matters which particular mix of price and quantity is selected.

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