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In the basic supply-and-demand model, which combination of supply and demand leads to the lowest prices?

a. high supply and low demand
b. high supply and high demand
c. low supply and high demand
d. low supply and low demand

User Oush
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Final answer:

In the basic supply-and-demand model, the combination of low supply and high demand leads to the highest prices, not the lowest prices. To achieve the lowest prices, you would need a combination of high supply and low demand.

Step-by-step explanation:

In the basic supply-and-demand model, the combination of low supply and high demand leads to the highest prices, not the lowest prices.

A low supply means there is a scarcity of the product, which increases the price. On the other hand, high demand means there are a lot of people wanting to buy the product, which also increases the price.

To achieve the lowest prices, you would need a combination of high supply and low demand. With a high supply, there is an abundance of the product, which drives the price down. And with low demand, fewer people are wanting to buy the product, which further decreases the price.

User Karellm
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