In the used car market with warranties,the market for lemons (poor quality used cars)is ________ and the market for good cars is ________.
A) efficient; efficient
B) inefficient because of oversupply; inefficient because of undersupply
C) inefficient because of oversupply; inefficient because of oversupply
D) efficient; inefficient because of undersupply
E) inefficient because of oversupply; efficient

Question

Quizplus · Accepted Answer

The Answer of In the used car market with warranties,the market for lemons (poor quality used cars)is ________ and the market for good cars is ________.
A) efficient; efficient
B) inefficient because of oversupply; inefficient because of undersupply
C) inefficient because of oversupply; inefficient because of oversupply
D) efficient; inefficient because of undersupply
E) inefficient because of oversupply; efficient

In the Used Car Market with Warranties,the Market for Lemons