Andrew Wants to Purchase Adam's Car

Multiple Choice

Andrew wants to purchase Adam's car. Andrew is prepared to pay a maximum of $2,000. Adam is not willing to accept anything lower than $1,000. Suppose Andrew makes the first offer and there is an even number offers and counteroffers. If Andrew and Adam are equally patient, Adam will sell his car for:

A) $1,000.
B) $1,500.
C) $2,000.
D) Somewhere between $1,000 and $2,000, but the exact amount cannot be determined without knowing Andrew's and Adam's opportunity cost per negotiating round.
E) Cannot be determined without first knowing the number of negotiating rounds.