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If All Used Cars in a Market with Symmetric Information

Question 78

Multiple Choice

If all used cars in a market with symmetric information about quality are sold at the same price, then


A) sellers of good quality cars are subsidizing sellers of lemons.
B) buyers of good quality cars are subsidizing buyers of lemons.
C) sellers of lemons are subsidizing sellers of good quality cars.
D) sellers of good quality cars are subsidizing buyers of lemons.

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