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You are buying a used car and according the Blue Book the value of the car you want to buy is between $30,000 and $35,000.

a. How much are you willing to pay for the car if you think the seller knows as much as you about the quality of the car?
b. How much are you willing to pay for the car if you think the seller knows more about the car than you do?

User Rob White
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1 Answer

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Final answer:

When deciding how much to pay for a used car, you should consider the information you have and the knowledge of the seller. If the seller knows as much as you, you should be willing to pay within the Blue Book range. If the seller knows more, you would need to evaluate the additional information to determine the appropriate price.

Step-by-step explanation:

When deciding how much to pay for a used car, it is important to consider the information you have and the knowledge of the seller. If you think the seller knows as much as you about the quality of the car, you would be willing to pay somewhere within the range mentioned in the Blue Book, which is between $30,000 and $35,000. This range represents a fair market value for the car based on the information available.

However, if you think the seller knows more about the car than you do, you might need to adjust your willingness to pay. For example, if the seller has additional information about the car's maintenance history or any hidden issues, they might have a higher asking price. In this case, you would need to evaluate the additional information provided by the seller and determine if it justifies paying a higher price.

User Kevin Olomu
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