Two types of used Fender Stratocaster guitars are available for sale: those made in the U.S.and those made in Mexico.It is impossible for the buyer to know which is which,but the seller knows.The value of a U.S.Stratocaster is $900 and the value of a Mexican Stratocaster is $400.The U.S.Stratocasters are 30% of Fender's production and the Mexican Stratocasters are 70% of production.No seller must sell a guitar for less than the guitar's value.
-Refer to the information above.As time goes on,buyers' reservation prices will __________ and __________ U.S.-made Stratocasters will be offered for sale.

Question

Quizplus · Accepted Answer

As buyers become more aware of the different values between the U.S. and Mexican Stratocasters, their reservation prices will likely fall. Additionally, since the value of a U.S. Stratocaster is higher, sellers may choose to hold onto them rather than sell them for a lower price, resulting in fewer U.S. Stratocasters being offered for sale.

Two Types of Used Fender Stratocaster Guitars Are Available for Sale