William Owns a Car That He Values at $3000

question 3

Multiple Choice

William owns a car that he values at $3000.Jackson values the car at $5000.The negotiations between them for a potential trade are as follows: William offers a price to Jackson.If Jackson accepts, trade takes place at that price.If Jackson rejects, bargaining proceeds to the next round in which Jackson gets the make a price offer to William.At this point, if William accepts, trade takes place at the price suggested by Jackson.If William rejects the offer, no trade takes place between them.William keeps the car and Jackson gets a payoff of $0.What outcome will result from negotiation process?

• A)William offers a price of $3000 and Jackson accepts.
• B)William offers a price of $5000 and Jackson accepts.
• C)William offers a price of $4000 and Jackson accepts.
• D)William offers a price of $3000 and Jackson rejects; Jackson offers a price of $5000 in the second period of negotiations and William rejects.
• E)William offers a price of $5000 and Jackson rejects; Jackson offers a price of $3000 in the second period of negotiations and William rejects.

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Definitions:

Blood Colloid Osmotic Pressure

Pressure exerted by plasma proteins on capillary walls, which helps to maintain the water balance between blood and interstitial fluid.

Capillary

Small, thin-walled blood vessels that connect arterioles and venules, and facilitate the exchange of water, oxygen, carbon dioxide, and many other nutrients and waste substances between blood and tissues.

Baroreceptors

Sensory nerve endings found in the walls of arteries and the heart that sense changes in blood pressure.

Blood Pressure

The force exerted by circulating blood on the walls of blood vessels, often measured as an indicator of heart health.