More low-quality goods are a large share of the market when buyers cannot observe quality. This is known as
A)adverse selection of sellers.
B)lemon bias.
C)selection quandary of buyers.
D)market quality bias.

Question

Quizplus · Accepted Answer

Adverse selection of sellers occurs when buyers cannot accurately assess the quality of a product, leading to a market where low-quality goods dominate because sellers of high-quality goods exit the market.

More Low-Quality Goods Are a Large Share of the Market