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Tidy Tidy
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9 years ago
Consider a used car market in which half the cars are good and half are bad (lemons). Suppose the average price of a good car is $9,000 and the average price of a lemon is $3,000. If rational buyers are willing to pay $6,000 for a used car, then sellers will agree to sell mostly the lemons at this price. What is the term used to describe this situation?
A) moral hazard
B) adverse selection
C) an efficient market
D) economic irrationality
Textbook 
Essentials of Economics

Essentials of Economics


Edition: 4th
Authors:
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Repeat after me: 'Calm down. Things are gonna be fine. Things are gonna be all great. Just relax.' Wink Face
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VincenzoDVincenzoD
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8 years ago
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Tidy Author
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9 years ago
Thank you, thank you, thank you!
lipop
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Yesterday
Good timing, thanks!
dianeflunder
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2 hours ago
This helped my grade so much Perfect
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