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Match each statement with the correct reasoning in the proof below.

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User ChAlexey
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1 Answer

4 votes

Answer:

When demand for goods increases - Price will rise

When supply of goods increases - Prices will fall

Explanation:

Supply and demand function works oppositely in economy. When there is huge demand for goods and supply is short then prices will rise. This is because supply is not sufficient to meet the demand and the market is not in equilibrium position.

User Jennifer Jolie
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