The major prediction of the lemons model is that:
A)asymmetric information reduces the average quality of goods offered for sale.
B)people will generally choose "low-hanging fruit".
C)a used car in good condition can be sold for a higher-than-average price.
D)used cars offered for sale are generally in better-than-average condition.

Question

Quizplus · Accepted Answer

Since the sellers of high-quality goods will be unlikely to get their asking price in the presence of asymmetric information, they will have little incentive to sell those items.

The Major Prediction of the Lemons Model Is That