A Car Salesman Using the Low-Ball Technique Would Do Which

question 36

Multiple Choice

A car salesman using the low-ball technique would do which of the following?

• A) First, get the buyer to agree to buy a car at an expensive price, then reduce the price to make the buyer feel good about the purchase.
• B) Lead the potential buyer to believe that the model and color he wants are scarce.
• C) Tell the buyer that the car is definitely not for the sale, and then say that it could be sold if the buyer will outbid the previous bidder.
• D) Get the potential buyer to agree to buy the car at a reduced price, then say the manager will not allow the sale unless the customer is willing to pay $250 more than the initial agreement.

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Definitions:

Open Market

A market structure where economic transactions are conducted freely and transparently, allowing for unrestricted competition.

Gain or Loss

The financial result that occurs when the selling price of an asset differs from its original purchase price.

Bonds

Fixed income investment products representing loans made by an investor to a borrower, typically corporate or governmental, which pay periodic interest payments.

Retired

The status of an asset that has been removed from service or the phase in an individual's life when they exit the workforce.