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An economic model which the laws of supply and demand determine what is produced and consumed and at what cost

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Answer:

The law of supply and demand is a theory that explains the interaction between the sellers of a resource and the buyers for that resource. The theory defines the relationship between the price of a given good or product and the willingness of people to either buy or sell it. Generally, as price increases people are willing to supply more and demand less and vice versa when the price falls.

Step-by-step explanation:

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