Use the Following Setup

question 33

Multiple Choice

use the following setup
Consider a sequential game between a shopkeeper and a haggling customer.The party who moves first chooses either a high price ($50) or low price ($20) and the second mover either agrees to the price or walks away from the deal and neither party gets anything.Ignore costs and assume the customer values the item at $60.
-​If the customer moves first with a high price what is the best response of the shopkeeper

• A)​Accept the high price happily
• B)Walk away from the deal
• C)Throw the haggling customer out of your store
• D)​Laugh at the customer's face

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Definitions:

Mechanical

Pertaining to the design, operation, and use of machines or tools.

Physical

Relating to the body as opposed to the mind or emotions, or being in a material state.

Occult Blood

Blood that is not visible to the naked eye, often detected in stool or urine samples through laboratory tests.

Peristalsis

The series of wave-like muscle contractions that moves food through the digestive tract.