Refer to the scenario above. Which of the following will happen in equilibrium if the car dealer has a reputation of trustworthiness?
A) You will trust him and he will cooperate.
B) You will trust him and he will defect.
C) You will not trust him.
D) You will earn positive consumer surplus.
A
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Autarky refers to
A) a situation in which there is no trade. B) the equilibrium a nation reaches after trade begins. C) a situation in which nations trade goods and services. D) the location on a consumption possibilities curve.
Suppose the Bureau of Labor Statistics uses Ballpark Franks as the hot dogs used when calculating the consumer price index. During 2012, Oscar Mayer aggressively reduces prices
Consumers respond by purchasing more Oscar Mayer and less Ballpark Franks. The 2012 CPI is likely to A) understate the average prices paid by consumers. B) overstate the average prices paid by businesses. C) overstate the average prices paid by consumers. D) understate the average prices paid by businesses. E) neither understate nor overstate the average prices because some consumers will still buy Ballpark Franks.