Suppose That There Are Only Two Types of Used Cars,peaches

question 102

Multiple Choice

Suppose that there are only two types of used cars,peaches and lemons.Peaches are worth $10,000 and lemons are worth $4,000.Without effective signals such as warranties,the owners of peaches cannot sell their cars for $10,000 because the

• A) owners of peaches cannot convince buyers that their cars are worth $10,000.
• B) buyers cannot convince owners of peaches to sell their cars for $10,000.
• C) owners of lemons cannot convince buyers that their cars are worth more than $4,000.
• D) buyers cannot convince owners of lemons to sell their cars for more than $4,000.
• E) buyers cannot convince owners of lemons to sell their cars for $4,000.

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Definitions:

Denial

A defense mechanism in which confrontation with a reality or fact is avoided by denying the existence of the problem or reality.

Bargaining

A process of negotiation between two or more parties each with its own aims, needs, and viewpoints seeking to discover a common ground and reach an agreement to settle a matter of mutual concern or resolve a conflict.

Acceptance

The process or act of receiving or consenting to something or someone, often implying a positive emotional response.

Sexually Transmitted Infection

An infection transmitted through sexual contact, caused by bacteria, viruses, or parasites.