In each of the following cases, explain how the advertisement functions as a signal to a potential

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In each of the following cases, explain how the advertisement functions as a signal to a potential buyer. Explain what information the buyer lacks that is being supplied by the advertisement and how the information supplied by the advertisement is likely to affect the buyer's willingness to buy the good.
a. "Looking for work. Excellent references from previous employers available."
b. "Electronic equipment for sale. All merchandise carries a one-year, no-questions asked warranty."
c. "Car for sale by original owner. All repair and maintenance records available."
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Microeconomics

ISBN: 978-1429283434

3rd edition

Authors: Paul Krugman, Robin Wells

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