Jim is haggling with a car dealer over the sale price of a used car. When he entered the store, the storekeeper was already haggling with the other customer. His bargaining position could get worse if
a. The customer leaves
b. Another customer enters the store, interested in the car
c. He gets an offer from another seller
d. All of the above
b
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High levels of inflation ________ the real value of money and, hence, ________ short-run equilibrium output.
A. reduce; increase B. increase; decrease C. increase; increase D. reduce; decrease
When stock prices become more volatile, the ________ curve for gold shifts right and gold prices ________, everything else held constant
A) demand; increase B) demand; decrease C) supply; increase D) supply; decrease
In the long run people come to expect whatever inflation rate the Fed chooses to produce, so unemployment returns to its natural rate
a. True b. False Indicate whether the statement is true or false
The classic example of adverse selection is the
a. market for used cars. b. market for new cars. c. relationship between shareholders and managers. d. relationship between a coach and an athlete.