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supply and demand

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In classical economic theory, the relation between these two factors determines the price of a commodity. This relationship is thought to be the driving force in a free market. As demand for an item increases, prices rise. When manufacturers respond to the price increase by producing a larger supply of that item, this increases competition and drives the price down. Modern economic theory proposes that many other factors affect price, including government regulations, monopolies, and modern techniques of marketing and advertising.

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QUIZ YOURSELF ON AFFECT VS. EFFECT!

In effect, this quiz will prove whether or not you have the skills to know the difference between “affect” and “effect.”
Question 1 of 7
The rainy weather could not ________ my elated spirits on my graduation day.
The New Dictionary of Cultural Literacy, Third Edition Copyright © 2005 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.
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