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Refer to the following news articles and relevant weblinks contained within on the brick-and-mortar video game retailer GameStop: Kurov, Alexander (2021) Wall Street isn't just
Refer to the following news articles and relevant weblinks contained within on the brick-and-mortar video game retailer GameStop:
- Kurov, Alexander (2021) "Wall Street isn't just a casino where traders can bet on GameStop and other stocks - it's essential to keeping capitalism from crashing", The Conversation, February 5th, available:https://theconversation.com/wall-street-isnt-just-a-casino-where-traders-can-bet-on-gamestop-and-other-stocks-its-essential-to-keeping-capitalism-from-crashing-154154
- Hiltzik, Michael (2022) "Column: Remember the GameStop stock craze? Looks like it's over", Los Angeles Times, January 25th, available:https://www.latimes.com/business/story/2022-01-25/column-gamestop-meme-stocks
Based on this discussion in the articles and relevant microeconomic theory, explain the endogenous processes at work of the GameStop bubble and subsequent crash. Use relevant demand and supply diagrams to aid your answers. For the speculative bubble, show a linkage and explain how there is an unstable equilibrium
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