The Seller of an Existing House Claims That It Is

question 101

Multiple Choice

The seller of an existing house claims that it is in great shape, and he is offering a 2-year warranty on the house. His statements about the quality of his house are likely to be:

• A)credible even in the absence of a warranty.
• B)overstated.
• C)true because offering a warranty is a costly-to-fake signal.
• D)untrue because otherwise he would not offer the warranty.