Economics: Principles, Problems, and Policies, 19th Edition

Published by McGraw-Hill Education
ISBN 10: 0073511447
ISBN 13: 978-0-07351-144-3

Chapter 17 - Asymmetric Information, Voting, and Public Choice - Problems - Page 372: 1c

Answer

A potential seller of a good used car may not be willing to accept the average value as payment.

Work Step by Step

This is because the price of the average used car is substantially lower than that of a good used car, by ${$4,000}$, so a potential seller would likely not accept this loss.
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