One Consequence of the Asymmetric-Information Problem in the Used Car

Multiple Choice

One consequence of the asymmetric-information problem in the used car market, if left unresolved, is the higher probability of

A) new cars declining in quality because of competition from used cars.
B) a declining quality of used cars for sale in the market.
C) a rising quality of used cars for sale in the market.
D) used-car buyers willing to pay higher prices in the market.