Inga wants to buy a used computer but is nervous about the risk of buying one that could be a lemon. What will induce Inga to buy?
A)She will buy if the seller tells her it is a high-quality computer.
B)She will buy if the computer is only slightly used.
C)She will buy if the price is the price of a low-quality used computer.
D)She will buy if there is another buyer in the market.

Question

Quizplus · Accepted Answer

Inga will be induced to buy if the price is set at the level of a low-quality used computer, as this reduces her financial risk in case the computer turns out to be a lemon. This pricing strategy can help overcome her concerns about the potential quality issues of the used computer.

Inga Wants to Buy a Used Computer but Is Nervous