Chapter 14 - Imperfect Information: Adverse Selection and Moral Hazard - Exercises - 14.1 Adverse Selection for Buyers: The Lemons Problem - Page 333: 1.5

downward increase

With a decrease in the supply price of plums, there will be a downward shift in the supply curve. This will increase the purchasing. When the minimum supply price decreases, sellers of high-quality cars are willing to accept lower prices → supply curve shifts downward. At these lower prices, more high-quality cars enter the market → buyers are more likely to get a plum instead of a lemon.