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You Went to a Craft Show and Paid an Exorbitant

Question 73

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You went to a craft show and paid an exorbitant price for an embroidered shawl that the seller said was hand embroidered and had been imported from India.Several months later,you found a similar shawl in another showroom at a much lower price and realized that the one you bought was not imported.This is an example of a market with ________.


A) asymmetric information
B) a positive externality
C) a negative externality
D) the free-rider problem

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