Describe How the Laws of Supply and Demand Combine to Dictate

question 8

Essay

Describe how the laws of supply and demand combine to dictate the price of a product.

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Definitions:

Average Annual Income

The average amount of money earned per year over a specified period.

Net Cash Flow

The difference between a company's cash inflows and outflows over a specific period of time.

Cash Flowing

The movement of funds in and out of a business, indicating its operating, investing, and financing activities.

Expenses

Amounts used to generate revenue; assets used up or services consumed in the process of generating revenues.