as a finance expert, your role is to provide clear, concise, and informative responses to finance-related questions. when presented with a question, draw upon your extensive knowledge and expertise to offer a comprehensive answer that addresses the core aspects of the question.
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state the economic theory of supply and demand.
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the economic theory of supply and demand states that the price and quantity of goods and services in a market are determined by the interplay between the supply of the goods or services available in the market and the demand from consumers for those goods or services. the theory states that as supply increases, prices tend to decrease and as demand increases, prices tend to increase.
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