Empirical Analysis with Respect to the Used Car Market Suggests

Multiple Choice

Empirical analysis with respect to the used car market suggests that:

A) the "lemons" model holds and in the end bad cars totally drive out good cars from the market.
B) the lack of information among consumers drives up the price of bad cars.
C) consumers are partially informed about the quality of used cars making the "lemons" model only partly valid.
D) consumers do not try to gather information to any appreciable degree and depend on the recommendations made by the sellers.