Jill runs a bike store in Hawthorn. She has recently heard from friends that a company known as Outdoor Venture Bikes has been producing an impressive range of bikes. Miguel tells Jill that he does...

Jill runs a bike store in Hawthorn. She has recently heard from friends that a company known as

Outdoor Venture Bikes has been producing an impressive range of bikes. Miguel tells Jill that he does not have a set price for his bikes, but he invites her to come and see them. When Jill arrives at the company’s premises Miguel shows her around. Jill asks Miguel what price he wants for his bikes. Miguel seems unsure. Eventually Miguel says to Jill, ‘I think that they might be worth about $500. I reckon that’s a fair price.’