Table 14.2
-Refer to table 14.2.The buyers assumed chance of getting a lemon will ________ and hence the willingness to pay for the used boat will ________.
A) fall; rise
B) rise; fall
C) fall; fall
D) rise; rise

Question

Table 14.2
-Refer to table 14.2.The buyers assumed chance of getting a lemon will ________ and hence the willingness to pay for the used boat will ________.
A) fall; rise 
B) rise; fall 
C) fall; fall 
D) rise; rise

Quizplus · Accepted Answer

If the buyers assume the chance of getting a lemon falls, they perceive less risk, which increases their willingness to pay for the used boat.

Table 14.2 -Refer to Table 14.2.The Buyers Assumed Chance of Getting a Getting