One of the ways the market for used cars copes with the problems associated with private information is through the offering of
A) leases.
B) warranties.
C) low interest rates.
D) high prices for high-quality used cars.
E) low prices.

Question

Quizplus · Accepted Answer

Offering warranties for used cars helps to mitigate the problem of private information by providing buyers with some assurance of the car's quality and reducing the risk of unexpected repairs or maintenance costs.

One of the Ways the Market for Used Cars Copes