Which of the Following Reduces the Consequences of Asymmetric Information

Multiple Choice

Which of the following reduces the consequences of asymmetric information?

A) used-car dealers not offering warranties to reduce buyers' risk
B) insurance companies having zero deductibles
C) states having "lemon laws" that offer compensation to buyers of new or used cars that turn out to be lemons
D) property insurers increasing premiums for those who install security systems
E) health-insurance providers marketing their products in a way that attracts very sick customers