In an asymmetric market for used cars,which of the following could be used to avoid a thin market?
A) offering money-back guarantees on plum used cars
B) offering warranties on lemon used cars
C) offering repair guarantees on lemon used cars
D) used car salesmen

Question

Quizplus · Accepted Answer

Offering money-back guarantees on plum used cars can help build trust and signal quality to buyers, thus avoiding a thin market by encouraging more transactions.

In an Asymmetric Market for Used Cars,which of the Following