Which of the following statements about a market for used cars is INCORRECT?
A) The presence of low-quality cars decreases consumers' willingness to pay.
B) An increase in price increases the quantity of high-quality cars supplied.
C) An increase in price decreases the quantity of low-quality cars supplied.
D) The decrease in the quantity of high-quality cars lowers consumers' willingness to pay.

Question

Quizplus · Accepted Answer

In a market for used cars, an increase in price would generally increase the quantity of both high-quality and low-quality cars supplied, not decrease the quantity of low-quality cars supplied. Sellers are more motivated to sell both types of cars at higher prices.

Which of the Following Statements About a Market for Used