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Warranties in the Used Car Market ________ the Problem of Private

Question 93

Multiple Choice

Warranties in the used car market ________ the problem of private information thereby causing the price of good and bad used cars to ________.


A) reduce; be the same
B) reduce; differ
C) magnify; be the same
D) magnify; differ
E) None of the above answers is correct because warranties have nothing to do with private information.

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