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Trade allows each person to specialize in the activities he or she does best, thus increasing each individual's productivity.
Excess Supply
The situation in which the quantity of a good or service offered by producers exceeds the quantity demanded by consumers at a given price, often leading to a decrease in prices.
Market Price
The current price at which a good or service can be bought or sold, determined by the intersection of demand and supply forces in the market.
Quantity Demanded
The total amount of goods or services that consumers are willing and able to purchase at a given price in a specific time period.
Quantity Supplied
The quantity of a product or service that suppliers are ready and capable of selling at a particular price during a certain timeframe.
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