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What Is Regulation? What Is the First Step in the Creation

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What is regulation? What is the first step in the creation of a new regulation?


Definitions:

Industry Supply

The total output of goods or services that firms in a specific industry are willing and able to sell at various price levels.

Decreasing-cost Industry

An industry where average costs of production decrease as the scale of output increases.

Long-run Equilibrium Price

The price at which the quantity of a good demanded equals the quantity supplied, with all adjustments made for factors affecting supply or demand over time.

Product Demand

The desire and willingness of consumers to purchase a particular product at various prices during a certain period.

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