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Even When the Demand for One Good Is High,the Price

question 49

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Even when the demand for one good is high,the price of the good is also affected by supply.The textbook illustrates this by comparing the price of two items that were auctioned on the same day.Which of the following describes the results of the auction?


Definitions:

Positive Externalities

Benefits experienced by third parties or the society at large as a result of an economic activity, without them directly paying for it.

Economic Activity

Actions that involve the production, distribution, and consumption of goods and services within an economy.

Government Enforcement

Refers to the actions and measures taken by government authorities to ensure compliance with laws, regulations, and policies.

Private-Sector Coercion

The exertion of pressure or compulsion on individuals or entities by private organizations or businesses, rather than by governments.

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