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The equilibrium price is determined by
Supply only
The Government
Demand only
Demand and supply
- Option 1: Supply only
- Incorrect. Supply impacts price, but alone it doesn't determine equilibrium.
- Option 2: The Government
- Incorrect. Governments can influence prices through regulations, but they do not establish market equilibrium.
- Option 3: Demand only
- Incorrect. Demand affects price, but solely it can't set the equilibrium.
- ? Option 4: Demand and supply
- Correct. Equilibrium price results from the interaction between demand and supply. It is the point where demand equals supply, leading to a stable pricing situation.
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