The "Lemons" Model Suggests That in Cases of Asymmetric Information

Multiple Choice

The "lemons" model suggests that in cases of asymmetric information between buyers and sellers:

A) high-quality goods will slowly drive out low quality goods due to market pressures.
B) consumers will choose both high- and low-quality goods but the general trend is toward improving quality.
C) the quantity supplied of goods with better quality tends to decline.
D) buyers end up paying a high price for high-quality goods and low price for low-quality goods.