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


Answer: A

Economics

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