A sales manager at a car dealership revealed that he considers how much the customer appears to know about the car when he's negotiating a price. Ignorant people tend to pay a premium on their car. Price discrimination explains this "ignorance premium" since people who:

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The statement that "people who don't bother to research are probably less sensitive to price" is the most logical explanation for why the sales manager might charge an "ignorance premium" to those customers who are less informed about the cars they are trying to buy. Option A does not necessarily follow, as there may be other reasons why someone does not bother to research a car (e.g. lack of time or interest), and it doesn't necessarily mean they want the car any less. Option B is not relevant, as the cost of gas is unlikely to be a major factor in the negotiation of the car price. Option D may be true in some cases, but it is not a direct explanation for the "ignorance premium" phenomenon.

A Sales Manager at a Car Dealership Revealed That He