Adverse selection will occur in a market as a result of

Name: Adverse selection will occur in a market as a result of
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Adverse selection occurs due to asymmetric information, where one party in a transaction has more information than the other, leading to a situation where buyers or sellers with bad quality products or services are more likely to participate in the market, while those with good quality products or services are less likely to do so.

Adverse Selection Will Occur in a Market as a Result