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Which of the Following Results from the Lemons Problem Observed

Question 86

Multiple Choice

Which of the following results from the lemons problem observed in the market for used cars?


A) The ratio of lemons to high-quality cars will be high.
B) The ratio of lemons to high-quality cars will be low.
C) Good quality used cars will be sold at a price much higher than their market value.
D) Lemons will not be offered for sale in the market.
E) The price of lemons will be below their market value.

Correct Answer:

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