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Question
An equilibrium price is unaffected by non-price factors.
a. True
b. False
Solution
VerifiedAnswered 5 months ago
Answered 5 months ago
Step 1
1 of 2Before we solve this exercise, it's important to understand the concept of non-price factors.
Non-price factors are often represented as conditions that affect the market even if they don't have a price value.
Such conditions are:
- population (number of consumers)
- preferences
- purchasing power
- other complementaries and substitutes
- expected price/inflation
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