[Solved] The “lemons model” predicts quality deterioration in the used car market because

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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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MicroEconomics, Theory and Applications 2

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