1.1. If you get a crack in your windshield, you can take your car to an auto-glass...

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1.1. If you get a crack in your windshield, you can take your car to an auto-glass repair shop where they will gladly try to repair your windshield, so you can avoid having to replace it. They guarantee their work, too; if the repair is not successful, they will allow you to apply the money you already paid for the unsuccessful repair toward the purchase of a new windshield. Sounds terrific, but how does this strategy relate to the material in the chapter? If all auto-glass repair shops employ this strategy, what impact do you think this has on the price of a new windshield?

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Modern Principles Microeconomics

ISBN: 9781429239998

2nd Edition

Authors: Tyler Cowen, Alex Tabarrok

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