In economics,the term "lemon" is used to describe:
A)any product that commands a very high market price.
B)any product which repeatedly breaks down.
C)a product for which there is an excess demand in the market.
D)a product that most people do not need.

Question

Quizplus · Accepted Answer

In economics, the term "lemon" is commonly used to describe a product that repeatedly breaks down or has defects, and as a result, has lower value or demand in the market. This term was originally coined by economist George Akerlof to describe the market for used cars, where buyers may be uncertain about the quality and reliability of the car they are purchasing, and may be willing to pay less as a result.

In Economics,the Term "Lemon" Is Used to Describe