A street vendor sells a replica of a designer handbag to a young woman who believes the handbag is authentic.The street vendor is engaging in

Name: A street vendor sells a replica of a designer handbag to a young woman who believes the handbag is authentic.The street vendor is engaging in
Brand: Quizplus
Rating: 4.9 (52 reviews)

Question

Quizplus · Accepted Answer

The street vendor is engaging in adverse selection, as they are intentionally selling a replica of a designer handbag as though it were authentic. There is no indication that moral hazard is present in this scenario.

A Street Vendor Sells a Replica of a Designer Handbag