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Reasons why allocation of resources is influenced by demand and supply:
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Reasons why allocation of resources is influenced by demand and supply:

User Marwan Alsabbagh
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16 votes
The interaction of demand and supply in product and resource markets generates prices that serve to allocate items to their highest valued alternatives. Factors that interfere with the workings of a competitive market result in an inefficient allocation of resources, causing a reduction in society's overall well-being.
User Rob Fonseca
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