Price is the key factor that determines both quantity supplied and quantity demanded.

Question

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Price is a major determinant in both the quantity supplied by producers and the quantity demanded by consumers. When the price of a good or service goes up, producers are likely to supply more, and consumers are likely to demand less. Conversely, when the price goes down, producers will supply less, and consumers will demand more. This relationship is known as the law of supply and demand.

Price Is the Key Factor That Determines Both Quantity Supplied