In the market for used cars,owners of lemons usually sell their cars to friends and relatives.

Question

Quizplus · Accepted Answer

Owners of lemons are less likely to sell their cars to people they know because they would feel guilty for selling a problematic car to someone they have a personal relationship with. Instead, they are more likely to sell their cars to strangers in the used car market where they can avoid feeling bad about any potential problems with the car.

In the Market for Used Cars,owners of Lemons Usually Sell