Sellers of high-quality products tend to leave a market when the

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When the market is subject to adverse selection due to seller's having private information, it means that buyers can't tell the difference between high-quality products and low-quality ones. This causes high-quality sellers to leave the market, as they can't sell their products at the desired price and are forced to compete with low-quality sellers, who can offer lower prices because their cost of production is lower due to the lower quality of their product. This creates a situation where the market is dominated by low-quality products, which is not desirable for high-quality sellers who want to maintain their reputation for producing high-quality products.

Sellers of High-Quality Products Tend to Leave a Market When