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.
Economics
You might also like to view...
Supply-side economists argue that
A) lower tax rates always lead to lower tax revenues. B) higher tax rates lead to increased productivity. C) lower tax rates sometimes lead to increased tax revenues. D) lower tax rates lead to a drop in real Gross Domestic Product (GDP).
Economics
If a consumer is spending a small portion of his or her income on a good, then the demand for the good is likely to be inelastic
a. True b. False Indicate whether the statement is true or false
Economics