The basic idea behind an auction is that:
A) buyers want to buy from the sellers with the lowest ask prices, and sellers want to sell to buyers with the highest bid prices.
B) buyers want to buy from the sellers with the highest ask prices, and sellers want to sell to buyers with the highest bid prices.
C) buyers want to buy from the sellers with the highest ask prices, and sellers want to sell to buyers with the lowest bid prices.
D) buyers want to buy from the sellers with the lowest ask prices, and sellers want to sell to buyers with the lowest bid prices.
Question 2
Ron decided to sell a particular stock when he found out that many other people were selling it. This is an example of ________.
A) anchoring
B) signaling
C) sniping
D) herding
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