With asymmetric information in the market for used cars

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    high quality cars can drive low quality cars out of the market as they remain unsold.
     consumers realize that many cars in a used car market are high quality cars.
     low quality cars can drive high quality cars out of the market.
     the presence of high quality cars in the market increase the price of low quality cars to equal that of high quality cars.
asked Jun 2, 2013 in Economics by anonymous
    

1 Answer

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low quality cars can drive high quality cars out of the market.
answered Jun 3, 2013 by Xyz ~Expert~ (3,650 points)

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