Which of the Following Is a Good Example of the Low-Ball

question 220

Multiple Choice

Which of the following is a good example of the low-ball technique?

• A) A car salesman offers to sell you a car for a cheap price, but after reading the fine print, you see that there are many hidden fees and charges.
• B) A prospective buyer offers a low price for your house, hoping that you will reach a favourable compromise price.
• C) A door-to-door salesman asks you for a glass of water before proceeding with his sales pitch.
• D) An antiques dealer offers you a very low price for your grandfather's watch, expecting that you will take the best offer given, regardless of its value.

---

Definitions:

Nonprice Rationing

Methods of distributing goods or services using criteria other than price, such as queues or rationing cards.

Price Ceiling

A government-imposed limit on how high a price is charged for a product, aimed at protecting consumers from rapid price increases.

Queuing

Waiting in line as a means of distributing goods and services: a nonprice rationing mechanism.

Excess Demand

A situation where the quantity demanded of a good or service exceeds its supply at the current price.