A seller is offering an item for $20, will not lower the price, and there is no tax. A potential buyer is aware of the offer, and thinks the item is worth exactly $20 to them as a buyer. According to the lecture, and assuming both buyer and seller are rational, what will happen?

A seller is offering an item for $20, will not lower the price, and there is no tax. A potential buyer is aware of the offer, and thinks the item is worth exactly $20 to them as a buyer. According to the lecture, and assuming both buyer and seller are rational, what will happen?



The buyer will buy and be happy

Nothing, it isn't worth the cost of the exchange

The buyer will buy but won't be happy

The buyer will travel to look at the item but then not buy



Answer: Nothing, it isn't worth the cost of the exchange


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