Answer to Question #236697 in Finance for nana

Question

Mary is having a yard sale and is willing to sell a painting if she gets at least $2, buts she has not marked a price on it. John is at her sale and willing to pay up to $100 for this painting. What can economic theory tell us about the price that will result? Choose the ONE most correct answer and provide a reason for your answer.                                                          

Answer 1

B. There will be no sale because these two values are too far apart.

For sale to occur the values must be very close.