A downtown diner daily serving the same business people will be ...

[Haya94]

A downtown diner daily serving the same business people will be more likely to serve a tasty lunch than a snack bar at a tourist attraction.
 
  What will be an ideal response?

Question 2

If sellers of good cars and sellers of lemons both offer a warranty on their cars, consumers will then be able to tell which cars are the lemons.
 
  Indicate whether the statement is true or false

[bulacsom]

Answer to Question 1

True. The diner will benefit from a good reputation with consumers. The business people will repeatedly visit a good diner. The snack bar at the tourist attraction will usually only serve consumers once. There is no need to build a good reputation.

Answer to Question 2

False. The lemon owners are sending a false signal that consumers cannot detect. There is still nothing to distinguish a lemon from a good car.

[Haya94]

Excellent

[rachel]

TYSM