Which one of the following is true of a market for used cars?
A)A consumer typically overestimates the probability of getting a lemon low-quality car).
B)As buyers become more pessimistic about their chances of buying a high -quality car, the price of used cars both low-quality and high-quality)decreases.
C)There is a public information problem.
D)The willingness to pay is less than the willingness to accept.

Question

Quizplus · Accepted Answer

As buyers become more pessimistic about their chances of buying a high-quality car, they are willing to pay less, leading to a decrease in the overall price of used cars.

Which One of the Following Is True of a Market