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Consider the decision tree we constructed for IDEA in Session 1 of week 4. Assume that all of the data used in the example remain the same except for the probability of the market remaining weak or strong. Suppose that, instead of a 0.5 chance that the market is strong, the probability that the market is strong is now 0.6.
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Universities frequently decide to set the price of attending sporting events to zero for their students. This is an example of reducing scarcity for these activities.
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