Rhonda Would Like a Better Bicycle,and She Considers Selling Her

Multiple Choice

Rhonda would like a better bicycle,and she considers selling her old one by advertising on the bulletin board in the student center.She decides against it because the used bicycles listed on the board are underpriced.This example illustrates the problem of:

A) adverse selection.
B) moral hazard.
C) positive correlation.
D) risk aversion.