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Q. |
The “lemons model” predicts quality deterioration in the used car market because |
A. | used cars require increasing maintenance. |
B. | suppliers and demanders have different information about cars’ quality. |
C. | used cars are generally of a lower quality than new cars. |
D. | people will usually buy new cars if they are available. |
Answer» B. suppliers and demanders have different information about cars’ quality. |
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