Imagine a double oral auction for a gallon of jam. The buyer bids $4. The seller asks $7. What is the most likely next step?

Question

Quizplus · Accepted Answer

The most likely next step in a double oral auction when the buyer bids less than the seller's asking price is for the buyer to bid again with an amount between their initial bid and the seller's asking price. This is known as the bidding process and is the standard way to reach a price both parties are willing to agree on. Option A is not appropriate since a contract can only be made once there is a mutual agreement on the price. Option C is unlikely since the seller would not drop their asking price below what the buyer originally bid.

Imagine a Double Oral Auction for a Gallon of Jam