One effect of the lemons problem in the used car market is that

Question

Quizplus · Accepted Answer

Without reliable information, buyers are unable to distinguish between good and bad cars. As a result, they become wary of purchasing used cars altogether, and only those sellers who have lemons to sell are willing to take the risk of offering used cars for sale. This leads to an increase in the number of lemons on the market and a decrease in the number of good cars, which further reduces the willingness of buyers to purchase used cars, perpetuating the cycle.

One Effect of the Lemons Problem in the Used Car