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for most goods and services, excluding such things as national defense and public education, the quantity supplied refers to the quantity of the good or service that businesses produce and deliver to the market. supply refers to the relationship between that quantity and the price of the good or service. Thus, supply generally refers to business firm behavior. supply is primarily determined primarily by costs of production and distribution and by the strategic interactions among firms. Public policies also influence supply, even for those goods and services that private firms rather than government provide.
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