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An increase in demand is created, this can be seen in the diagram: the demand curve shifts to the right, leading to an increase in equilibrium price from EP1 to EP2.The quantity bought and sold also increases from EQ1 to EQ2.
Case 3 Government legislation----they limit the level of supply for every industry and make a law on anti-pollution during the production of gold...
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Therefore producers take measure to reduce the pollution by increasing the cost of production. In order to avoid loss, they will make an attempt to raise the price of gold, but if they fail to do this, for instance, there are fewer people investing in gold etc... So that it is impossible to raise the price...
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