Scenario: The market for used cell phones is very popular in Barylia. However, several phones available in this market are of an inferior quality, and it is often impossible to differentiate between a good-quality phone and a poor-quality phone.
-Refer to the scenario above.Based on the given information,we can conclude that the market for used cell phones in Barylia ________.

Question

Quizplus · Accepted Answer

The scenario mentions that it is difficult to differentiate between good and poor-quality phones, indicating that there is asymmetric information in the market. This means that some buyers may unknowingly purchase lower quality phones at a higher price, while some sellers may take advantage of this lack of information to sell their inferior products at a higher price.

Scenario: the Market for Used Cell Phones Is Very Popular