試題詳解

14.Suppose Joe has a reliable two-year-old Honda Civic that's in excellent condition and that he would be willing to sell for $13,000. Lauren, who is risk-neutral, is considering whether to buy Joe's car. She's willing to pay $14,000 for a two-year-old Honda Civic that is reliable and only S10,000 for one that's not reliable. Lauren cannot tell whether Joe's car is reliable, but she believes that only 20 percent of two-year-old Hondas for sale in the market are reliable and that the other 80 percent are not reliable. To Lauren, Joe's car looks just like every other two-year-old Honda that's for sale. Which of the following statements is NOT true?
(A) Lauren will not buy Joe's Car
(B) In the long run, the sales price of two-year old Hondas in the market will rise.
(C) In the long run, the quality of two-year old Honda Civics offered for sale will fall.
(D) One of"costly-to-fake" examples in this case for Joe is to offer a warranty to pay for major repairs after selling the car.
(E) None of the above.