Suppose That in a Market for Used Cars,there Are Good

question 46

Multiple Choice

Suppose that in a market for used cars,there are good used cars and bad used cars (lemons) .Consumers are willing to pay as much as $9,000 for a good used car but only $3,000 for a lemon.Sellers of good used cars value their cars at $7,500 each and sellers of lemons value their cars at $1,500 each.Buyers cannot tell if a used car is reliable or is a lemon.Based on this information,what is the likely outcome in the market for used cars?

• A)Sellers of good used cars will drop out of the market.
• B)Sellers of good used cars will incur losses.
• C)Sellers of lemons will drop out of the market.
• D)Used cars will sell for $6,000.

---

Definitions:

Cultural Competencies

The ability of professionals to understand, respect, and effectively interact with individuals from varied cultural backgrounds.

Personal and Professional Journey

The ongoing development and experiences of an individual in both their personal life and career path.

Unresolved Issues

Problems, conflicts, or emotions that have not been adequately addressed or resolved.

Helping Field

Professions that are centered around providing care, support, and assistance to individuals in need, such as counseling, social work, and healthcare.