Pak is one of many sellers of green beans in local farmer's markets where consumers are willing to pay more for organically grown green beans than regular green beans. However, the buyers have no way to verify whether any of the green beans for sale are grown organically. As a result of this
A)the market price tends to be high because all sellers claim to sell organic green beans.
B)green beans are not sold because there is no trust in the market.
C)most of the green beans sold will be organic because sellers want to cater to customers.
D)green beans end up selling at low prices because buyers are skeptical.

Question

Quizplus · Accepted Answer

In markets where buyers cannot verify the quality of a product (like organic status), they tend to be skeptical and assume the lower quality, leading to lower prices for all sellers regardless of actual quality.

Pak Is One of Many Sellers of Green Beans in Local