If buyers care sufficiently more about cars than do sellers, then there are prices at which transactions
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If buyers care sufficiently more about cars than do sellers, then there are prices at which transactions can occur. In that scenario, there is no longer any adverse selection (although there still may be some information asymmetry).
Indicate whether the statement is true or false, and justify your answer.
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The statement is true Lets consider the logic behind it Adverse selection This occurs in a market where one party usually the seller has more informat...View the full answer
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