-Suppose That Everyone Is Risk Neutral and Buyers Cannot Identify

question 41

Multiple Choice

-Suppose that everyone is risk neutral and buyers cannot identify the lemons.The expected value of a used car is $8,000.No good cars will be sold in this market

• A) unless the sellers of good cars place a value greater than $8,000 on their cars.
• B) unless the sellers of lemons place a value greater than $8,000 on their cars.
• C) unless sellers engage in cheap talk.
• D) unless the sellers of good cars place a value lesser or equal to $8,000 on their cars.

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Definitions:

Individualism

A principle valuing the independence and self-reliance of an individual, often emphasizing personal freedom and autonomy over collective or communal goals.

Light Therapy

A treatment for seasonal affective disorder (SAD) and certain other conditions by exposure to artificial light.

Depression

A mood disorder characterized by persistent feelings of sadness, loss of interest, and a lack of energy or motivation.

Light Therapy

Treatment using exposure to specific wavelengths of light used to address disorders like seasonal affective disorder (SAD).