"Lemons" in Used Car Market : ?) F+ A5 z2 a! J0 W
Suppose that you, a college student of somewhat limited means, are in the market for a used pickup truck. The following ad in a local used car publication catches your eyes.
8 n( `- W8 B/ B 1993 Ford Ranger, bilk, 4WD, a/cAM/FM/cass., showroom condition. 0 p1 X5 ?/ K, Z1 s$ Z0 j
Call 555-1234 after 5 p.m.
# [& n: l! S ?8 d8 j6 c This is exactly the kind of vehicle you want, so you call to inquire about the price. The price you are quoted over the phone is $2,000 lower than the price for this model with this equipment listed in a used car guidebook. Instead of being ecstatic, however, you are suspicious. ' H* x$ \0 j7 c( V. `2 Y- \8 f
For many products, when you must pay less than the going rate, you believe you are getting a great deal. This is not necessarily the case for used cars or other durable goods(washing machines and television sets, for example) because with expensive products-or, what is essentially the same thing, products with high replacement costs-you must be particularly careful about getting a "lemon." Or a product of substandard quality. j, \5 S; |0 E
In addition to asking the price, the age of a car-or any other consumer durable-is a factor when you are trying to determine whether a seller is attempting to unload a lemon. While people have all sorts of reasons for wanting to sell their cars-even relatively new cars-most people hold off until they have put many thousands of miles on a car or until the used car is several years old. You would probably be as suspicious of a car that is "too new" as you would a car that is "too good” a deal. In fact, you are probably willing to pay a high price for a high-quality used car. While this price would certainly be acceptable to the seller, the competitive market might not facilitate such trades.
" i ]0 }6 e2 o' ]" G) l$ ^: R 1. The beginning of this passage assumes that college students
: l; }4 k- y* M: l# @# d A) Are very clever but not very rich.
1 ?1 T7 C& ?7 ?6 y/ ]" M4 u3 O; v( @ B) Are very capable but not very diligent.
1 b3 H, N3 {+ p3 \7 h( ]3 X C) Have limited material resources
9 e( J7 P+ ^& Z6 b) E) G D) Are not rich.
% ^; M$ u# \% q2 N 2. The passage indicated that, sometimes when you find a product of an unexpectedly low price. 4 [* r {+ X5 o* {3 L
A) You are very happy.
( O8 c# l3 Z+ M2 o9 ` B) You are rather suspicious. * U& P& P0 o* I1 |. Z- l
C) You are filled with happiness as well as surprise. ) ~$ h0 L! p* t5 O2 j& z
D) You feel uneasy. |