Which of the following is true of a used car market?
A) The sellers have more information than the buyers.
B) Gains from trade do not exist in the market.
C) The cars sold are identical in quality.
D) There is no consumer surplus in the market.

Question

Quizplus · Accepted Answer

In a used car market, the sellers often have more information about the car's history, condition, and maintenance than the buyers. This information asymmetry can lead to pricing inefficiencies or even fraud.

Which of the Following Is True of a Used Car