Recall the application about the California kiwifruit market and the "lemons" problem.If the problem of adverse selection exists in the kiwifruit market,we can expect the quality of fruit to be ________ and the price to be ________.

Question

Quizplus · Accepted Answer

Adverse selection leads to lower quality products in the market because sellers of high-quality products exit the market, leaving only low-quality products. Consequently, the price also tends to be low due to the poor quality.

Recall the Application About the California Kiwifruit Market and the "Lemons