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Re: Supply and Demand
I think you will also need to distinguish between a change in demand and a change in quantity demanded. A change in demand is NOT caused by price. Price effects quantity demanded. Changes in demand (i.e shift in demand curve) is effected by things such as changes to interest rates, income, etc...
The same applies to supply. Price does not effect the supply curve only the quantity supplied.
I.E at the end of the day price only effects where on a particular curve you are. Changes other than price effect the position of a curve itself.
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