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The Lemons Model Implies That,because Most Used Cars Offered for Sale

Question 94

Multiple Choice

The lemons model implies that,because most used cars offered for sale are of less-than-average quality,then


A) those with a better-than-average quality car have a greater incentive to sell.
B) the amount of a seller's overstatement of the car's condition declines.
C) those with a better-than-average quality car have an incentive not to sell.
D) the extent of buyers' understatement of their reservation price declines.
E) those with a better-than-average quality car have smaller incentive to keep their car.

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