If sellers of good cars and sellers of lemons both offer a warranty on their cars, consumers will then be able to tell which cars are the lemons
Indicate whether the statement is true or false
False. The lemon owners are sending a false signal that consumers cannot detect. There is still nothing to distinguish a lemon from a good car.
You might also like to view...
Refer to the figure above. If this were a voluntary restraint agreement, the welfare costs to the importing country would be
A) $14,000. B) $18,000. C) $38,000. D) $60,000.
What is a black market, and under what economic condition is it most likely to thrive?
What will be an ideal response?
Price Per UnitQuantity Demanded Per Unit of Time$2012$1817$1620$1424$1230$1036$840$644$448Refer to the above data. Over which price range is the price elasticity of demand elastic?
A. $10-$12 B. $4-$6 C. $12-$14 D. $6-$8
Which of the following is NOT an example of a negative externality?
A. inoculation against disease B. rush hour traffic C. playing a boom box loudly in a crowded park D. pollution