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Explain the concept of supply and demand in economics and how it influences prices and market equilibrium. Provide examples to illustrate these principles.

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Answer: See Below

Step-by-step explanation:

Remember: Supply moves diagonal from left to right, where as, demand falls from left to right and it is also diagonal. This should make an X shape on a graph. This influences prices and market equilibrium significantly. as prices are low (on the left of the graph) demand is extremely high. On the other hand, as price is high, demand is low. Think about lets say, a new gaming computer that costs 1.5 Million of dollars. Not so many people are willing to buy. Therefore supply (price) is high and demand is low. Now think about going back to school, school shopping list. Lets say notebooks. Since they are very inexpensive, supply is a lot ( where price is low) thus, creating high demand for notebooks.

Equilibrium is simple, EQUAL. Where supply and demand meet right at the middle of the X.

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