-The Market for Used Cars Is Shown in the Above

question 49

Multiple Choice

-The market for used cars is shown in the above figure.Buyers cannot tell whether any given car is a lemon.Forty percent (40%) of all cars are lemons.However,sellers can switch to selling lemons at lower costs.Which of the following statements is TRUE?

• A)Only lemons are sold for $1,600.
• B)Only lemons are sold for $800.
• C)All the sellers of good cars will switch to selling lemons.
• D)40% buyers will get lemons.

---

Definitions:

Closing Thought

A final comment or conclusion that wraps up the preceding content, providing closure or a takeaway for the audience.

Good-News Message

Communication that delivers positive, favorable, or beneficial information to the recipient.

Routine Claims

Standard requests or complaints made by customers regarding products or services.

Accusatory Tone

A manner of speaking that implies blame or holds someone responsible for something in a negative way.