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Define the Law of One Price and Explain How It

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Essay

Define the law of one price and explain how it works in terms of supply and demand.How does the law of one price explain sustained differences between prices?


Definitions:

Dispositional Attributions

The tendency to attribute someone's behavior to their personality, traits, or disposition rather than situational factors.

Attributional Style

An individual's characteristic way of explaining the causes of events, which can influence their motivation, emotions, and behaviors in various contexts.

Attribution Theory

A psychological framework for understanding how individuals infer the causes of others' behavior, whether attributing it to internal dispositions or to external situations.

Fundamental Attribution Error

The tendency to overemphasize personality-based explanations for behaviors observed in others while underemphasizing the role of situational factors.

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