One of the ways the market for used cars copes with the problems associated with private information is through the offering of
A) leases.
B) warranties.
C) low interest rates.
D) low prices.

Question

Quizplus · Accepted Answer

Warranties help mitigate the problem of asymmetric information by providing assurance to buyers about the quality and reliability of the used car, thus reducing the risk associated with private information.

One of the Ways the Market for Used Cars Copes