Vehicle leasing _____ the number of high-quality used cars and _____ adverse selection.
A) increases; reduces
B) increases; increases
C) decreases; reduces
D) decreases; increases

Question

Quizplus · Accepted Answer

Vehicle leasing increases the number of high-quality used cars because leased vehicles are often well-maintained and returned to the dealer after a few years, entering the used car market. It reduces adverse selection because the history and condition of these vehicles are typically well-documented, making it easier for buyers to assess their quality.

Vehicle Leasing _____ the Number of High-Quality Used Cars and _____

Vehicle Leasing _ the Number of High-Quality Used Cars and _