Potential buyers of older homes form their bids from imperfect estimates of a house's value.As a consequence,
A)High-value houses would remain unsold
B)Low value houses would remain unsold
C)Both of the houses would be sold
D)All of the above

Question

​Potential buyers of older homes form their bids from imperfect estimates of a house's value.As a consequence,
A)​High-value houses would remain unsold
B)Low value houses would remain unsold
C)Both of the houses would be sold
D)​All of the above

Quizplus · Accepted Answer

High-value houses are more likely to remain unsold because potential buyers, working with imperfect estimates, might undervalue them and thus bid lower than the sellers' expectations.

​Potential Buyers of Older Homes Form Their Bids from Imperfect

Potential Buyers of Older Homes Form Their Bids from Imperfect