Chapter 1

A) All of the cars will be sold. B) No cars will be sold. C) Only lemons will be sold. D) Only good cars will be sold. Answer: A . Diff: 1. Topic: How Ignorance about Quality Drives Out High-Quality Goods. 15) The market for used cars is shown in Figure 19.1. Buyers cannot tell whether any given car is a lemon. Forty percent (40%) of all cars ... ................
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