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Demand response refers to the way a power provider controls electrical-power consumption by, for example, setting the price of electricity dynamically and buying up surplus power, in response to power demand. This manner of power-consumption control is referred to as "demand response" because the demand side (i.e., individual households and businesses) responds to the demands of the provider side (i.e., power companies). It helps to create stable power supplies and reduce power consumption, especially during peak times.

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