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Kelly contracts with Raphael for Raphael to bring a pony to her daughter's birthday party in exchange for $100. Kelly later learns her daughter is frightened of ponies. She contacts Raphael and Raphael agrees to bring a donkey to the party for $50 instead. Which of the following is true of the original agreement involving the pony and the $100?
Central Planning Model
A system of economy where all choices regarding the creation and use of goods and services are made by the government.
American Capitalism
A system marked by private property, competitive markets, economic incentives, and limited government intervention in the economy.
Product Differentiation
The technique of identifying a product or service as unique in the market to boost its desirability to a chosen target demographic.
Mass Production Techniques
Methods of producing large quantities of products quickly and efficiently using assembly lines and standardized parts.
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