Multiple Choice
If buyers believe that the percentage of high quality goods on the market is greater than the actual percentage of high quality goods on the market
A) buyers will be willing to pay a price that is higher than the price they would pay with perfect information.
B) the most that buyers will be willing to pay is less than the price they would pay with perfect information.
C) sellers of low quality goods will be driven from the market.
D) the market will be in a short run equilibrium.
Correct Answer:
Verified
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