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Which of the Following Does NOT Describe a Situation in Which

Question 154

Multiple Choice

Which of the following does NOT describe a situation in which more low-quality used cars will be sold?


A) The prices of low-quality used cars are very low.
B) Buyers have little information about low-quality used cars.
C) Sellers have more information than buyers about low-quality used cars.
D) Sellers can exploit the economic incentives created by asymmetric information.
E) Buyers have information about low-quality used cars.

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