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The result is an equilibrium price and quantity set by the market forces of supply and demand.
I am a huge PC game online. In my thoughts I would think that I am the demand for better and more detailed games. And the supply lets say "Blizzard" is the supply for this games. Me as the demand wants these games at a reasible price, and it is up to the suppler "blizzard" to supply these games at that price. So we can find a equilibrium in the supply and demand graph.
According to (www.wikipedia.com)(2007) The supply and demand model describes the interaction in the market for a certain good between producers and consumers, in relation to the price and sales of the good...
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