A classified advertisement, placed by a car dealer, reads as follows: NEW 2012 BMW 525i Retail $48,838.50

Question:

A classified advertisement, placed by a car reads as follows:
*NEW*
2012 BMW 525i
Retail $48,838.50
WAS $37,998
NOW
$37,498
a. What is your reaction to this advertisement?
b. In the same paper, a computer advertised a $500 discount on a computer system, marked down from $3,495 to $2,995. Which do you think is a better deal, the special offer on the car or the computer? Why?
Dealer
A dealer in the securities market is an individual or firm who stands ready and willing to buy a security for its own account (at its bid price) or sell from its own account (at its ask price). A dealer seeks to profit from the spread between the...