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Interaction of supply and demand GapFill

Target Level
C
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The   government correspondingequilibrium individual price and quantity is determined by the   equilibrium interaction marketlaw of demand and supply.  Equilibrium price is also known as the market   rational clearingequilibrium conducive price.  Market forces adjust to   reduceeliminatecreate increase excess demand and supply.  The   incentivebarteringrationingsignalling function of price eliminates market shortages and surplus. The function of price that demonstrate where resources are needed is known as  incentivebarteringrationingsignalling. Consumer surplus is represented by the area   less than greater thanabovebelow the equilibrium price and   less thangreater thanbelowabove the demand curve. A   lengtheningleftwardrightwardconstant shift of the supply curve will reduce both the consumer and producer surplus.

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Pass Mark
72%