"Lemons" in Used Car Market
S( O5 G8 X; u S' Z. ? 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.
; H, v& Q% s. X' t, l 1993 Ford Ranger, bilk, 4WD, a/cAM/FM/cass., showroom condition.
8 B# r, ?& P/ d4 U Call 555-1234 after 5 p.m.
7 @' W( u* b8 e3 a5 C2 b 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 $2,000 lower than the price for this model with this equipment listed in a used car guidebook. Instead of being ecstatic, however, you are suspicious.
9 J7 w! l, d* E For many products, when you must pay less than the going rate, you believe you are getting a great deal. This is not necessarily the case for used cars or other durable goods(washing machines and television sets, for example) because with expensive products-or, what is essentially the same thing, products with high replacement costs-you must be particularly careful about getting a "lemon." Or a product of substandard quality. 1 S; E1 U) `! ~: ?% x' ]
In addition to asking the price, the age of a car-or any other consumer durable-is a factor when you are trying to determine whether a seller is attempting to unload a lemon. While people have all sorts of reasons for wanting to sell their cars-even relatively new cars-most people hold off until they have put many thousands of miles on a car or until the used car is several years old. You would probably be as suspicious of a car that is "too new" as you would a car that is "too good” a deal. In fact, you are probably willing to pay a high price for a high-quality used car. While this price would certainly be acceptable to the seller, the competitive market might not facilitate such trades.
/ ~. [ B' Y/ s 1. The beginning of this passage assumes that college students ! p6 L5 G0 r% X: J. [
A) Are very clever but not very rich. 6 ^. h; L o. m; T. x& m
B) Are very capable but not very diligent.
+ s; r# Q J& G- F! H: K8 w1 ^* t# o C) Have limited material resources ; D; F5 K4 o3 P/ Z% v0 ^7 J9 c7 Y
D) Are not rich. 2 a9 K7 z, H' d6 w3 t; Z
2. The passage indicated that, sometimes when you find a product of an unexpectedly low price. 2 H& D1 O& F6 t9 P
A) You are very happy.
% f$ F/ h3 \1 Z% n B) You are rather suspicious.
3 B) _; z! w" R, y& J4 L C) You are filled with happiness as well as surprise. 1 e0 W0 w$ n' \
D) You feel uneasy. |