Asked by sin lung leung on Jul 16, 2024

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The threat of rejection in market transactions:

A) leads to higher prices as sellers try to cover possible losses.
B) leads to better products and lower prices for consumers.
C) leads to less cooperation between buyers and sellers.
D) does all of these.

Market Transactions

Exchanges of goods, services, or assets between parties in a market.

Rejection

Rejection involves the dismissal or refusal of an idea, proposal, or application, often after consideration or evaluation.

Cooperation

The process of groups or individuals working together toward common goals or interests.

  • Explore the dynamics of market transactions and the effect of rejection threats on prices, products, and consumer-seller cooperation.
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Verified Answer

RM
Robin MedinaJul 21, 2024
Final Answer :
B
Explanation :
The threat of rejection in market transactions forces sellers to offer better products and lower prices to avoid losing potential customers. This benefits consumers in terms of product quality and affordability. It does not necessarily lead to higher prices, as sellers may be aware that higher prices could also result in rejection. While there may be some instances of less cooperation between buyers and sellers, overall, the market system incentivizes cooperation and mutual benefit.