An example of a market subject to adverse selection would be:
A)the video game market.
B)the new appliance market.
C)the used car market.
D)uniform commodity markets, like crude oil.

Question

Quizplus · Accepted Answer

The used car market is a classic example of adverse selection because sellers have more information about the quality of the car than buyers. This can lead to a market where only lower-quality cars are sold, as sellers of high-quality cars do not get fair prices due to the information asymmetry.

An Example of a Market Subject to Adverse Selection Would