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The equilibrium price is determined by
Supply only
The Government
Demand only
Demand and supply
- Supply only: This option suggests equilibrium price is set solely by supply, which isn't true. Supply alone can't determine price without considering demand.
- The Government: Governments can influence prices, but the equilibrium price is usually determined naturally by market forces, not solely by government actions.
- Demand only: This option indicates that only demand influences the equilibrium price, which is incorrect. Demand must interact with supply.
- Demand and supply: This option is correct. The equilibrium price is where demand and supply meet, balancing the quantity consumers want with the quantity producers offer.
By: santosh ProfileResourcesReport error
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