The model of monopolistic competition characterizes the market for plumbing services in a city. this market is initially in long-run equilibrium, but then there is an increase in market demand for plumbing services. we expect that in the long run: a. firms will leave the plumbing market. b. there will be a short-run increase in the number of firms, but then the number will return to the original level. c. firms will shut down, but they will not leave the industry. d. new firms will enter the plumbing market.

D) new firms will enter the plumbing market.

Explanation:

In the short run the price and output of existing plumbing services will rise, increasing revenues and profits.

But in the long run, new plumbing companies will enter the market. Other companies will see that exiting plumbing companies are making a lot of money and therefore they will want a share of the market and the profits for themselves. That will eventually shift the price to a new equilibrium.

cognitive overload: having a lot on your mind impairs decision-making and tends to result in the simplest, but not necessarily best, option being selected.

empathy gaps: overlooking how you might feel in a different situation can result in unnecessary purchases, such as overbuying when shopping for food on an empty stomach.

optimism and overconfidence: wearing rose-tinted glasses and having unrealistic expectations about the future can affect money management and leave you unprepared for a change in circumstance.

instant gratification: seeking instant gratification drives impulsive spending and can undermine long-term planning and savings.

harmful habits: automatic or mindless behaviour can amplify a poor financial decision as it becomes a recurring event.

social norms: we are heavily influenced by the actions of others; while this can be in certain circumstances, it also contributes to the pressure to keep up with the joneses through conspicuous consumption.

by knowing conditionality

explanation: