Anna's Antiques Expects to Get Two Bidders for the Unique

question 91

Multiple Choice

Anna's Antiques expects to get two bidders for the unique china teacup it sells.Each of the bidders can either have a high-value of $100 or a low-value of $70 with equal probability.If Anna receives $100 from the auction she can infer that

• A)​Both the bidders were high value bidders
• B)Both the bidders were low value bidders
• C)One of the bidders was high value,while the other was low value
• D)​All of the above

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Definitions:

Price Decrease

A reduction in the cost at which goods or services are sold to consumers.

Budget Constraint

The limitations on the goods and services available for purchase, based on the income and prices, reflecting the trade-off between different choices.

Money Income

The total amount of monetary earnings received by an individual or household, including wages, salaries, and other forms of financial income.

Budget Constraint

The limit set by available resources, defining the combination of goods or services that a consumer can afford.