In the Used Car Market, If Plums Exit the Market

question 81

Multiple Choice

In the used car market, if plums exit the market completely, the equilibrium price becomes the equilibrium price for _____, and only _____ are supplied.

• A) plums; plums
• B) plums; lemons
• C) lemons; lemons
• D) lemons; plums

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Definitions:

Overconfidence

A cognitive bias where an individual's subjective confidence in their judgments is reliably greater than their objective accuracy.

Accurate Decision

A decision that effectively meets the intended objective or solves the problem based on correct and reliable information.

Groupthink

A psychological phenomenon where the desire for harmony or conformity in a group results in an irrational or dysfunctional decision-making outcome.

Concurrence Seeking

The practice of striving for consensus and agreement within a group, sometimes at the expense of critical thinking.