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Chapter 3 presents an overview of the concepts of supply and demand, perhaps the most basic and familiar tools used by economists. These tools are used to show the final two Core Principles: the Efficiency Principle (efficiency is an important social goal because when the economics pie grows larger, everyone can have a larger slice) and the Equilibrium Principle (a market in equilibrium leaves no unexploited opportunities for individuals but may not exploit all gains achievable through collective action).
