"Lemons" in Used Car Market ) Q& D( c$ Q1 H6 e" E0 d& i) a8 [+ N9 Q
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.
3 [& Z5 X6 [8 n/ o9 e1 R* G1993 Ford Ranger, bilk, 4WD, a/cAM/FM/cass., showroom condition. ) b) @6 b& S5 l! f
Call 555-1234 after 5 p.m
+ i* V/ g2 U- H: v! B' r: |. SThis 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 $2,000 lower than the price for this model with this equipment listed in a used car guidebook. Instead of being ecstatic, however, you are suspicious.
+ b/ _" J8 Z& y0 n' [* GFor many products, when you must pay less than the going rate, you believe you are getting a great deal. This is not necessarily the case for used cars or other durable goods(washing machines and television sets, for example) because with expensive products-or, what is essentially the same thing, products with high replacement costs-you must be particularly careful about getting a "lemon." Or a product of substandard quality. 3 y8 V; A$ ?( K( J7 m
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. 5 ~3 D) Z. V8 [8 @( {
1. The beginning of this passage assumes that college students / q* l! }0 m7 ]( ?
A) are very clever but not very rich.
. D! c O$ p* I( C# HB) Are very capable but not very diligent.
& d J. X% o' z$ b$ P7 uC) Have limited material resources 9 Y3 b% k' ~8 C4 O/ A; H" i6 P
D) Are not rich.
& y9 h b7 s$ x2. The passage indicated that, sometimes when you find a product of an unexpectedly low price.
$ W5 J/ Z' Z# rA) You are very happy. ' T5 P! F- p' Q7 c0 b8 F- x
B) You are rather suspicious.
$ p& u3 X: X! A$ mC) You are filled with happiness as well as surprise.
; d9 f' \) h, ]/ _: a, cD) You feel uneasy.
3 z) n4 C; z- w. y. m! f3."Lemon" in this passage refers to
2 `8 s, N9 K2 ?1 h6 D" W0 UA) a kind of fruit.
; A. i8 X) U) J8 f" {! }5 ]B) A kind of new car. |