Multiple Choice
Which of the following is likely to happen in a used car market if the buyers feel that the best they can do is buy a lemon?
A) The sellers of high-quality used cars will reap high profits.
B) Higher gains from trade will be realized.
C) The entire market will shut down.
D) The sellers of lemons will earn high profits.
Correct Answer:
Verified
Correct Answer:
Verified
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