Potential buyers of older homes form their bids from imperfect estimates of a house's value.As a consequence,

A) High-value houses would remain unsold
B) Low value houses would remain unsold
C) Both of the houses would be sold
D) All of the above

Question

​Potential buyers of older homes form their bids from imperfect estimates of a house's value.As a consequence,A) ​High-value houses would remain unsoldB) Low value houses would remain unsoldC) Both of the houses would be soldD) ​All of the above

Ernesto Ordaniel · Accepted Answer

Final Answer : A, Explanation :  High-value houses are more likely to remain unsold because potential buyers, working with imperfect estimates, might undervalue them and thus bid lower than the sellers' expectations.

Potential buyers of older homes form their bids from imperfect estimates of a house's value.As a consequence,

A) High-value houses would remain unsold
B) Low value houses would remain unsold
C) Both of the houses would be sold
D) All of the above

Definitions

Learning Objectives

Learning Objectives

Related questions

​Potential buyers of older homes form their bids from imperfect estimates of a house's value.As a consequence,A) ​High-value houses would remain unsoldB) Low value houses would remain unsoldC) Both of the houses would be soldD) ​All of the above

Definitions

Learning Objectives

Learning Objectives

Related questions

Potential buyers of older homes form their bids from imperfect estimates of a house's value.As a consequence,

A) High-value houses would remain unsold
B) Low value houses would remain unsold
C) Both of the houses would be sold
D) All of the above