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

---

Definitions:

Black Stem Rust

A fungal disease caused by Puccinia graminis that affects cereals and grasses, characterized by dark rust pustules on stems and leaves.

Ascomycetes

A large phylum of fungi characterized by the formation of spores in saclike structures called asci.

Zygomycetes

A class of fungi characterized by their life cycle, which includes the formation of a zygospore during sexual reproduction.

Basidiomycetes

A class of fungi characterized by producing spores on basidia, including mushrooms, puffballs, rusts, and smuts.