Answer
buyers and sellers
Work Step by Step
Asymmetric markets are where one side, either the buyers or the sellers, has more information than the other side.
There is asymmetric information in the used-car market because $\textbf{buyers}$ cannot distinguish between lemons and plums, but $\textbf{sellers}$ can. ✅
Explanation:
Asymmetric information means one party in a transaction has more or better information than the other.
In the used-car market, sellers know the true quality of their cars (whether it’s a lemon—bad car—or a plum—good car), but buyers do not.
This leads to adverse selection, where bad-quality cars drive good-quality ones out of the market.
