Supply and Demand
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Join →Supply and demand are fundamental forces behind market prices. Demand represents the willingness to buy at different prices, while supply represents the willingness to sell. When the balance between buyers and sellers changes, the market may need to move to a different price level to attract sufficient opposing interest. We should think of supply and demand as a dynamic process rather than a simple rule saying that more buyers always mean a rising price.
Key Terms
- Supply and Demand — the core concept introduced in this lesson.
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