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But some goods cannot be resold.  Goods that are personal to the buyer, like a tailored suit or dress, cannot be resold.  Price discrimination works fine for personalized goods or exclusive markets, because there is not a resale market to destroy the discrimination.
 
But some goods cannot be resold.  Goods that are personal to the buyer, like a tailored suit or dress, cannot be resold.  Price discrimination works fine for personalized goods or exclusive markets, because there is not a resale market to destroy the discrimination.
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==Three basic principles of economics==
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We can now state the three most basic principles of economics with respect to price:
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*A rise in price tends to increase supply and decrease demand. Conversely a fall in price tends to decrease supply and increase demand.  '''LOWER PRICE MEANS HIGHER DEMAND'''
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*When demand exceeds supply at a given price, the price tends to rise. Likewise, when supply exceeds demand, the price tends to decrease.   
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*Price tends to move towards the amount at which the quantity in demand is equal to the quantity in supply: '''EQUILIBRIUM IS WHERE SUPPLY EQUALS DEMAND'''.
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Many of the problems in this course, and in any economics course, can be answered just by remembering and applying the above there principles about price.
      
== Imbalance in Information ==
 
== Imbalance in Information ==
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