Private information leads _____ to expect hidden problems in items offered for sale,leading to _____ prices and to the best items being kept off the market.
A)buyers;high
B)buyers;low
C)sellers;high
D)sellers;low

Question

Quizplus · Accepted Answer

This concept is known as adverse selection, where buyers suspect that items for sale might have hidden defects, leading them to offer lower prices. This phenomenon can result in a market where high-quality goods are less likely to be offered, as sellers are not willing to accept the lower prices that buyers are willing to pay due to their concerns about potential hidden problems.

Private Information Leads _____ to Expect Hidden Problems in Items