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Many People Purchase Toys with the Notion That They Will

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Many people purchase toys with the notion that they will appreciate in value over time. Assume the following graph represents the market for collectible toys with initial equilibrium at point A. What price will the sellers agree to if the market for collectible toys declines suddenly to D2 and they are subject to sunk cost fallacy? Explain. Many people purchase toys with the notion that they will appreciate in value over time. Assume the following graph represents the market for collectible toys with initial equilibrium at point A. What price will the sellers agree to if the market for collectible toys declines suddenly to D<sub>2</sub> and they are subject to sunk cost fallacy? Explain.

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Even though the market for collectible t...

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