Jo wants to buy organic strawberries. Several sellers in her town claim to sell organic strawberries, and their prices range from $2 to $4 per pound. Strawberries that are not labeled as organic sell for $1.50 to $2.50 per pound. What is FALSE about the situation Jo faces in the organic strawberry market?
A)It is not easy for her to verify if the strawberries are organic.
B)Price is not a reliable indicator of whether the strawberries are organic.
C)Sellers have little incentive to sell at a low price.
D)Sellers know more than buyers about whether the strawberries are organic.

Question

Quizplus · Accepted Answer

Sellers have an incentive to sell at a competitive price to attract buyers, especially if there are multiple sellers in the market.

Jo Wants to Buy Organic Strawberries