Sandra loves oranges and wants to buy a dozen from the only supplier, Alice, in exchange for cigarettes. However, Alice only has eight oranges left which she can trade for cigarettes. Which of the following statements will be true?

The size of the oranges will be the most important determinant of the terms of trade.

Sandra will be willing to pay a higher price than she usually would since only eight oranges are left.

The terms of trade will be more beneficial to Sandra than to Alice.

The quality of cigarettes will determine the number of oranges Sandra will buy.

Alice has a greater incentive to embellish the quality of oranges.