Scenario: You Walk into a Used Car Lot to Buy

Multiple Choice

Scenario: You walk into a used car lot to buy your first car. However, you are not sure of the quality of the cars in the lot and expect one-third of them to be of poor quality.
-Refer to the scenario above.Based on the given information,we can conclude that the market for used cars has ________.

A) information asymmetry
B) a perfectly competitive structure
C) positive externalities
D) negative externalities