"Lemons" in Used Car Market % c$ y, S0 H3 z/ d$ e4 M
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 v: E6 F1 W5 m6 m1 c5 ~1993 Ford Ranger, bilk, 4WD, a/cAM/FM/cass., showroom condition. ( v; V" s% }. U: L
Call 555-1234 after 5 p.m
, P+ Z( z# I$ ]0 @' A" E8 M1 [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 $2,000 lower than the price for this model with this equipment listed in a used car guidebook. Instead of being ecstatic, however, you are suspicious.
- q! w. N0 {/ r3 d& aFor many products, when you must pay less than the going rate, you believe you are getting a great deal. This is not necessarily the case for used cars or other durable goods(washing machines and television sets, for example) because with expensive products-or, what is essentially the same thing, products with high replacement costs-you must be particularly careful about getting a "lemon." Or a product of substandard quality. 8 J' T9 X7 P+ b f
In addition to asking the price, the age of a car-or any other consumer durable-is a factor when you are trying to determine whether a seller is attempting to unload a lemon. While people have all sorts of reasons for wanting to sell their cars-even relatively new cars-most people hold off until they have put many thousands of miles on a car or until the used car is several years old. You would probably be as suspicious of a car that is "too new" as you would a car that is "too good " a deal. In fact, you are probably willing to pay a high price for a high-quality used car. While this price would certainly be acceptable to the seller, the competitive market might not facilitate such trades. # ]1 I! V/ Y w, P3 F' s
1. The beginning of this passage assumes that college students 8 ~! h! k: B) B6 D: b
A) are very clever but not very rich. , H; d8 O0 j/ f" g$ F1 S7 j% N
B) Are very capable but not very diligent. ; N+ e% S, `6 l L1 n1 k8 R
C) Have limited material resources
W2 e, N" W ? zD) Are not rich. J& U+ y5 m4 C, k! e
2. The passage indicated that, sometimes when you find a product of an unexpectedly low price. 9 b& o7 A. M$ s0 ~6 x
A) You are very happy. 3 j8 W) s O8 [% ^- \) R
B) You are rather suspicious.
, v0 c' S0 ?$ O9 w M0 H. I7 PC) You are filled with happiness as well as surprise.
" E% }- [+ D6 fD) You feel uneasy. ! \ ^1 {3 m2 i$ k- }8 g
3."Lemon" in this passage refers to % j( x% Q7 N8 z& x+ _& l
A) a kind of fruit.
% ] z3 ]6 G* N6 Z5 ?# LB) A kind of new car. |