The lemons problem occurs mainly because of

Name: The lemons problem occurs mainly because of
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The lemons problem is a classic example of asymmetric information where one party has more information than the other. In the case of used cars, the seller has more information about the quality of the car than the buyer. This causes the buyer to be hesitant to purchase a used car for fear of purchasing a "lemon" or a low-quality car. As a result, the market for used cars may fail.

The Lemons Problem Occurs Mainly Because of