Credence goods are particularly susceptible to the lemons problem because
A) they have qualities that are difficult for producers to fully assess.
B) they have qualities that are difficult for consumers to fully assess.
C) creative responses among producers create volatility in market supply.
D) creative responses among consumers create volatility in market demand.
B
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Anna owns the Sweet Alps Chocolate store. She charges $10 per pound for her hand made chocolate. You, the economist, have calculated the elasticity of demand for chocolate in her town to be 2.5
If she wants to increase her total revenue, what advice will you give her?
The characteristics that money should have include:
a. portability, durability, and flexibility. b. durability, flexibility and stability. c. durability, portability, and non-homogeneity. d. scarcity, portability, and divisibility. e. portability, homogeneity, and flexibility.