In the Used Car Market with Warranties,the Market for Lemons

Multiple Choice

In the used car market with warranties,the market for lemons (poor quality used cars) is ________ and the market for good cars is ________.

A) efficient; efficient
B) inefficient because of oversupply; inefficient because of undersupply
C) inefficient because of oversupply; inefficient because of oversupply
D) efficient; inefficient because of undersupply
E) inefficient because of oversupply; efficient