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#1
Q: Law of Demand?
A: As price rises, quantity demanded falls (inverse relationship), all else equal.
#2
Q: Law of Supply?
A: As price rises, quantity supplied rises (direct relationship), all else equal.
#3
Q: What is equilibrium price?
A: The price at which quantity supplied equals quantity demanded.
#4
Q: What is price elasticity of demand?
A: % change in quantity demanded / % change in price. Measures sensitivity to price.
#5
Q: What is GDP?
A: Gross Domestic Product — the total monetary value of all goods and services produced in a country in a year.
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