Often When Consumers Enter the Used Car Market to Make

question 79

Multiple Choice

Often when consumers enter the used car market to make a purchase,

• A)they know little about what they are purchasing.
• B)the motto "let the buyer beware" applies.
• C)the information they gain may not be perfect, but may be what economists call "optimally imperfect." 
• D)All of the above are correct.

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Definitions:

Complements

Goods that are consumed together because the use of one enhances the use of the other.

Indifference Curves

Graphical representations in economics showing different combinations of goods among which a consumer is indifferent.

Substitution Effect

The change in the consumption patterns of goods or services due to a change in their relative prices, holding the consumer's income constant.

Hot Dogs

Cooked sausages, traditionally beef or pork, served in a slit of a partially sliced bun, often with various condiments.