Andrew wants to purchase Adam's car. Andrew is prepared to pay a maximum of $2,000. Adam is not willing to accept anything lower than $1,000. Suppose Andrew makes the first offer and there is an even number offers and counteroffers. If Andrew and Adam are equally patient, Adam will sell his car for:
A) $1,000.
B) $1,500.
C) $2,000.
D) Somewhere between $1,000 and $2,000, but the exact amount cannot be determined without knowing Andrew's and Adam's opportunity cost per negotiating round.
E) Cannot be determined without first knowing the number of negotiating rounds.

Question

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The Answer of Andrew wants to purchase Adam's car. Andrew is prepared to pay a maximum of $2,000. Adam is not willing to accept anything lower than $1,000. Suppose Andrew makes the first offer and there is an even number offers and counteroffers. If Andrew and Adam are equally patient, Adam will sell his car for:
A) $1,000.
B) $1,500.
C) $2,000.
D) Somewhere between $1,000 and $2,000, but the exact amount cannot be determined without knowing Andrew's and Adam's opportunity cost per negotiating round.
E) Cannot be determined without first knowing the number of negotiating rounds.

Andrew Wants to Purchase Adam's Car