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

Question

Quizplus · Accepted Answer

The store provides valuable information to Pat, but Pat can buy his stereo elsewhere. That is, even though Pat doesn't have to pay for the information, he cannot be excluded from using it.

Pat Goes to the Local Electronics Store to Learn About