Which Seller Is Most Likely to Face Adverse Selection Problems

Multiple Choice

Which seller is most likely to face adverse selection problems due to buyers having private information?

A) A lawyer gives clients a choice of paying $500 per hour or paying a flat fee of $6,000 for up to 12 hours of work plus $500 per hour for any work beyond 12 hours.
B) An accountant prices his services for completing tax returns individually, with each person's price based on the number of schedules and forms that need to be used to complete each return.
C) A toy store offers a special sale of "buy one, get one free" on puzzles.
D) A clothing store advertises free hemming alterations on pants and then adjusts its price on pants to add in the average cost of hemming based on the proportion of the population that is taller or shorter than average.