Multiple Choice
Which of the following statements is correct when sellers know more about quality than buyers?
A) High price indicates high quality, but the low price does not imply low quality.
B) Low price indicates low quality, but the high price does not imply high quality.
C) There is a positive relationship between price and product quality.
D) Price is not a reliable indicator of product quality.
Correct Answer:
Verified
Correct Answer:
Verified
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