The lemons model predicts that the market price of used cars will be _______ than the market value of used cars of average condition,therefore attracting _______ cars into the market.

Question

Quizplus · Accepted Answer

The lemons model suggests that due to asymmetric information, the market price of used cars will be lower than the value of cars in average condition, attracting worse than average cars into the market.

The Lemons Model Predicts That the Market Price of Used