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Question: Suppose that May Pang and Lilith are negotiating the sale of a used Honda Accord. May Pang, the owner, wants a price of $12,000 for the car, but she is willing to accept as little as $10,500. Lilith, the prospective buyer, has a maximum budget of $11,000. She wants to pay $10,000 for the Accord, but she can pay as much as $11,000 and feel satisfied that she has gotten a good deal on the car that she wants. Both parties are willing to walk away from the deal if they cannot settle on a mutually agreeable price. Which one of the following statements is true?
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