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How Does Reverse Marketing Work

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How does reverse marketing work?


Definitions:

Equilibrium Quantity

The quantity of goods or services supplied that is equal to the quantity demanded at the market equilibrium price.

Equilibrium Price

The price point in the market where the amount of products available meets the amount of products consumers want to buy.

Demand

The quantity of a product or service that consumers are willing and able to purchase at various prices over a given period of time.

Allocative Efficiency

A state of the economy in which production represents consumer preferences; every good or service is produced up to the point where the last unit provides a marginal benefit equal to its marginal cost of production.

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