The "Lemons Problem" Is Overcome in the Used Car Market

Multiple Choice

The "lemons problem" is overcome in the used car market by

A) strict government regulation of private deals between individual buyers and sellers of used cars.
B) most used cars selling for well below their true values.
C) "lemon insurance" policies being offered by insurance companies.
D) the existence of used car dealers who are concerned about maintaining their reputations.