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  • Hey you should buy the new Honda s33, it just came out last month and its only $20,000
  • i might wait a couple of months till the price goes down.
  • WHAT!!!! the car is so nice you have to get it now.
  • i know, but i just don't have enough for it right now.
  • well its your lost, its the nicest car on the market.
  • yeah, but don't worry i will get it in a couple of months.
  • the image above shows us short run and long run analyses because the short run value of the car is $20,000 but over time the value and price of the car will decrease being the long run analysis.
  • the image above can show sticky vs flexible wages and prices, since the lady does not have all the money on her now because of sticky wages causing the car to be expensive when it first comes out, rather than flexible and it staying at one price
  • this is an over view of both short run and long run analyses and sticky vs flexible wages and prices, Sticky wages are because of different frictions that makes them difficult to adjust, even if market conditions change. ... Flexible wages are just the opposite - if there is no frictions in the economy,and long run and short The main difference between long run and short run costs is that there are no fixed factors in the long run; there are both fixed and variable factors in the short run . In the long run the general price level, contractual wages, and expectations adjust fully to the state of the economy.
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