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Based on the cobweb model, prices and quantities are determined......... 1) sequentially, so there are no lags between the production decision and realization of output.

Based on the cobweb model, prices and quantities are determined.........

1) sequentially, so there are no lags between the production decision and realization of output.

2) simultaneously, so last year price determined this year quantity which determines next year price.

3) sequentially, so current price determines current quantity which determines next year price.

4) sequentially, so last year price determined this year quantity which determines next year price.

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