The dynamic laws of demand and supply tell us

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The dynamic laws of demand and supply tell us that:

1. Excess demand leads to a tendency of prices to fall or decrease.

2. Excess supply leads to a tendency of prices to rise or increase.

3. The greater the excess supply, the greater the tendency of prices to fall or decrease.

4. Prices have a natural tendency to rise or increase even when the quantity supplied equals the quantities demanded.

Reference no: EM13684312

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