It seems quite possible that cigarette companies concealed information about the effects of smoking on health, causing cigarette prices to be __________ and cigarette sales to be __________ than would have been the case under symmetric information.
A)higher; higher
B)higher; lower
C)lower; higher
D)lower; lower

Question

Quizplus · Accepted Answer

Cigarette companies concealing information about the effects of smoking on health would lead to higher cigarette prices and higher cigarette sales than would have been the case under symmetric information. This is because consumers would be less aware of the risks associated with smoking and therefore more likely to purchase cigarettes.

It Seems Quite Possible That Cigarette Companies Concealed Information About