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Price and Quantity Demanded

 In economics, there is often an inverse relationship between the price of a product and the quantity demanded by consumers. As the price of a product increases, consumers tend to demand less of it, and as the price decreases, consumers tend to demand more.

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When interest rates rise, the prices of existing bonds generally fall. This is because newly issued bonds with higher interest rates become more attractive to investors, causing the prices of older bonds with lower interest rates to decrease.

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