Which of the following is a market-based solution to the problem of adverse selection?

In what way are other assets less liquid than money?

What will be an ideal response?

In the above figure, an increase in income is best demonstrated by a

A) shift of D1 to D2 in Graph A, if good A is a normal good. B) shift of D2 to D1 in Graph A, if good A is a normal good. C) movement along D0 from P1 to P2 in Graph B. D) movement along D0 from P2 to P1 in Graph B.