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After Owning a Car with a Manual Transmission, Don Buys

question 105

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After owning a car with a manual transmission, Don buys a car with an automatic transmission. When first driving his new car, he keeps reaching for the nonexistent clutch and gearshift. This is an example of ​


Definitions:

Long-Run Equilibrium

A state in which supply and demand are balanced, and all firms in the industry are earning normal profits in the long term.

Short-Run Equilibria

A market condition where supply and demand are balanced, but only temporarily as external factors can soon alter this balance.

Demand Increases

A situation where the quantity of a good or service that consumers are willing and able to purchase at a given price rises.

Competitive Market

A market structure characterized by a large number of buyers and sellers, where no single entity has the power to significantly influence market prices.

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