Author Question: Mr. Smith put his laptop up for sale. He is aware of the fact that the laptop malfunctions ... (Read 158 times)

HCHenry · **on:** Jun 29, 2018

Mr. Smith put his laptop up for sale. He is aware of the fact that the laptop malfunctions frequently.

However, none of the potential customers who came to buy the laptop were able to discover the problem and one of them actually bought it at a remunerative price. This occurred due to ________. A) the presence of asymmetric information
B) the presence of positive externalities
C) the presence of negative externalities
D) the selective retention of information by sellers

Question 2

If the market demand for oranges is relatively inelastic with respect to price, orange consumers

A) pay no attention to price in their purchasing decisions.
B) will buy fewer oranges at any higher price and will spend less money on oranges.
C) will buy fewer oranges at any higher price but will spend more money on oranges.
D) will buy more oranges at any higher price.
E) will buy more oranges only if their incomes increase.