Because of the lack of buyer's information about a perfectly functioning used car:
A)the buyer will pay less than what it's worth because of the probability it will be a lemon.
B)sellers of perfectly functioning used cars will be less likely to enter the market.
C)the market will eventually become saturated with lemons.
D)All of these statements are true.

Question

Quizplus · Accepted Answer

The lack of information leads buyers to assume a risk of purchasing a lemon, causing them to offer lower prices. This discourages sellers of good cars from entering the market, leading to a market dominated by lemons.

Because of the Lack of Buyer's Information About a Perfectly