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Which of the Following Worsens Adverse Selection Due to Buyers

Question 57

Multiple Choice

Which of the following worsens adverse selection due to buyers having private information?


A) Buyers have the choice to buy or not buy whenever they want to.
B) Buyers have constraints on their ability to buy or not buy whenever they want to.
C) Sellers have very limited ability to change price.
D) Sellers have flexibility to lower price but not to raise price.

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