The Lemons Model Predicts That

question 80

Multiple Choice

The lemons model predicts that

• A) if there are low-quality goods in the market, there will be fewer or no high-quality items.
• B) if there are high-quality goods in the market, there will be fewer or no low-quality items.
• C) the more low-quality goods there are in the market, the more high-quality goods there will be in the market.
• D) if buyers are pessimistic about the percentage of low-quality goods on the market sellers of low-quality goods will be able to charge higher prices than if buyers had neutral beliefs.

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Definitions:

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A psychiatric treatment where seizures are electrically induced in patients to provide relief from mental disorders.