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Title: Suppose that in a market for used cars, there are good used cars and bad used cars (lemons). Consume Post by: Tidy on Jun 20, 2015 Suppose that in a market for used cars, there are good used cars and bad used cars (lemons). Consumers are willing to pay as much as $9,000 for a good used car but only $3,000 for a lemon. Sellers of good used cars value their cars at $7,500 each and sellers of lemons value their cars at $1,500 each. Buyers cannot tell if a used car is reliable or is a lemon. Based on this information, what is the likely outcome in the market for used cars?
A) Sellers of good used cars will drop out of the market. B) Sellers of good used cars will incur losses. C) Sellers of lemons will drop out of the market. D) Used cars will sell for $6,000. Title: Re: Suppose that in a market for used cars, there are good used cars and bad used cars (lemons). Con Post by: Sydnie on Aug 3, 2015 Content hidden
Title: Re: Suppose that in a market for used cars, there are good used cars and bad used cars (lemons). Consume Post by: Sydnie on Aug 31, 2015 I was confident with my answer, glad it was correct.
Oh, and thumbs-up are more than welcome :) Title: Re: Suppose that in a market for used cars, there are good used cars and bad used cars (lemons). ... Post by: Briana Acosta on Sep 27, 2020 thank you
Title: Re: Suppose that in a market for used cars, there are good used cars and bad used cars (lemons). ... Post by: Ryan Gonzaga on Oct 23, 2020 thx
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