Recall the Application about federal quality standards in the market for kiwifruit to answer the following question(s).
-Recall the Application.If the problem of adverse selection exists in the kiwifruit market,we can expect the quality of fruit to be ________ and the price to be ________.
A) high; high
B) high; low
C) low; high
D) low; low

Question

Quizplus · Accepted Answer

Adverse selection leads to lower quality products in the market because sellers of high-quality products exit the market, and prices tend to be low due to the presence of low-quality goods.

Recall the Application About Federal Quality Standards in the Market