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Topic: Business
Number of pages / Number of words: 6 / 1532
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This same theory proves itself true in our lives. If a new entertainment game system is introduced into the market, the price is initially very large. A few months later, a new system is introduced. The price of the prior system is then reduced to lure more customers. Most likely, the price of the older game system decreased by more than one percent...


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The price of the prior system is then reduced to lure more customers. Most likely, the price of the older game system decreased by more than one percent. This would mean that the price of the old game system is elastic.

Positive and Negative Externalities

In addition to supply and demand, externalities have the ability to affect the price of a good or service...


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