Distinguish between how the market reacts to a temporary difference in prices for the same resource and

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Distinguish between how the market reacts to a temporary difference in prices for the same resource and how the market reacts to a permanent difference. Why do the reactions differ?

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Microeconomics A Contemporary Introduction

ISBN: 978-1111415921

9th edition

Authors: William A. McEachern

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Question Posted: Dec 12, 2015 05:25 AM

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Distinguish between how the market reacts to a temporary difference in prices for the same resource and

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Because resources tend to flow to their highestvalued use temporary price differentials ...View the full answer

Microeconomics A Contemporary Introduction

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