Suppose more people drive SUVs because they believe they are safer than cars.The number of car-related deaths may increase if
A) an adverse selection problem causes people to drive more recklessly.
B) a moral hazard problem causes people to drive more recklessly.
C) there is adverse selection in the market for SUVs.
D) there is asymmetric information in the market for sedans.
Correct Answer:
Verified
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