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Why Do We Use the Demand-And-Supply Graphs to Explain Human

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Essay

Why do we use the demand-and-supply graphs to explain human behaviours regarding production and consumption?


Definitions:

Perfectly Elastic

A situation where the demand or supply for a good or service is infinitely responsive to changes in price.

Long-Run Supply Curve

A graphical representation showing the relationship between the price of a good and the quantity supplied after all inputs have been adjusted to their optimal levels.

Increase in Demand

A shift in the demand curve to the right, signifying that consumers are willing to purchase more of a good or service at the same prices, due to factors like increased income or changes in tastes.

Equilibrium Price

The market price at which the quantity of a good or service demanded equals the quantity supplied, leading to market equilibrium.

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