Scenario: You Walk into a Used Car Lot to Buy

question 49

Multiple Choice

Scenario: You walk into a used car lot to buy your first car. However, you are not sure of the quality of the cars in the lot and expect one-third of them to be of poor quality.
-Refer to the scenario above.Suppose you decide to buy a Toyota Corolla.You value the car at $10,000,but the car dealer values it at $8,500,which is not known to you.Which of the following is likely to be true?

• A) You will end up buying a high-quality car.
• B) You will end up buying a poor-quality car.
• C) You will end up earning a positive consumer surplus.
• D) You will choose not to buy the car.

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Definitions:

Walk

To move at a regular pace by lifting and setting down each foot in turn, never having both feet off the ground at once.

Infants

Young children from birth up to 12 months of age, a period marked by rapid growth and development across physical, cognitive, and socio-emotional domains.

Perceptual Development

The gradual process by which infants and young children gain the ability to interpret and understand sensory information.

Nature

The processes within an organism that guide it to develop according to its genetic code.