The Lemons Problem Gives the Owners of Above-Average-Quality Used Cars

Multiple Choice

The lemons problem gives the owners of above-average-quality used cars an incentive to:

A) exaggerate the quality of their cars when selling them.
B) offer a warranty when selling their cars.
C) understate the true quality of their cars when selling them.
D) ask for a sales price that is higher than the blue book value of their car.