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Economics plays an important role in making decisions about environmental issues. The values that we place on competing options often include price tags. It is therefore necessary to understand how economic models operate. In the classical view, the prices of goods and services in capitalistic systems are strongly influenced by supply and demand. Products that are in low supply command a high price, while those that are in high supply are cheap. Ideally, the system reaches an equilibrium at which it is not economical for a manufacturer to increase production. Learn more:
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