Suppose that both buyers and sellers observe the quality.What happens?

Name: Suppose that both buyers and sellers observe the quality.What happens?
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Both buyers and sellers observing the quality means that there is an incentive for sellers to offer good quality cars and for buyers to only purchase good quality cars, but there may still be some imperfect information or differences in valuation that allow for both good and bad cars to be traded.

Suppose That Both Buyers and Sellers Observe the Quality