Pat Goes to the Local Electronics Store to Learn About

question 69

Multiple Choice

Pat goes to the local electronics store to learn about high-end audio equipment. The salesperson spends an hour talking with Pat and demonstrating equipment. Pat then leaves and orders an audio system on the Internet for $250 less than the price at the store. Pat's behavior:

• A)is illegal.
• B)is a form of statistical discrimination.
• C)illustrates the free-rider problem.
• D)illustrates the problem of adverse selection.

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Definitions:

Monthly Payment

A fixed amount of money paid every month, often used in the context of loan or mortgage repayments.

Compounded Semi-annually

Refers to the process of applying interest to an initial sum and any accumulated interest on a semi-annual basis.

Monthly Payment

An amount of money that is regularly paid each month, often as part of a larger financial commitment or loan.

Car

A wheeled motor vehicle used for transportation, typically powered by an internal combustion engine or electric motor.