Dan is trying to sell a high-quality used desktop computer,but all potential buyers are not willing to pay the price that Dan wants.This is likely due to a(n)________ problem.
A) moral hazard
B) disutility
C) adverse selection
D) price discrimination

Question

Quizplus · Accepted Answer

Adverse selection occurs when there is a difference in information between the buyer and the seller. In this case, potential buyers may not see the value in the computer that Dan is selling, and may be offering lower prices than he expects. This could be because they do not fully understand the quality of the computer or its features.

Dan Is Trying to Sell a High-Quality Used Desktop Computer,but