Assuming That Information Is Symmetrical in the Used Car Market

question 28

Multiple Choice

Assuming that information is symmetrical in the used car market where both lemons and plums are sold, the equilibrium price for lemons is _____ the equilibrium price for plums.

• A) greater than
• B) less than
• C) equal to
• D) 50% less than

---

Definitions:

Mere Exposure Effect

A psychological phenomenon whereby individuals develop a preference for things merely because they are familiar with them.

Conscious System

Refers to the aspect of the human mind that is aware of self, the environment, and one's own thoughts, feelings, and experiences.

Abstract Categories

Conceptual groups or classifications that do not rely on physical properties but rather on shared qualities or ideas.

Age 2 1/2

A developmental stage in early childhood characterized by rapid changes in physical, cognitive, and social capabilities.