The adverse selection of sellers is the skew in markets toward buyers who pay less when sellers cannot tell a buyer's willingness to pay. Oskew in markets when sellers cannot observe quality that leads to lower prices. tendency for the mix of goods to be skewed toward more low-quality goods when buyers can't observe quality. O tendency for buyers to choose to buy from sellers who are not trustworthy even when product quality is high.

The adverse selection of sellers is the skew in markets toward buyers who pay less when sellers cannot tell a buyer's willingness to pay. Oskew in markets when sellers cannot observe quality that leads to lower prices. tendency for the mix of goods to be skewed toward more low-quality goods when buyers can't observe quality. O tendency for buyers to choose to buy from sellers who are not trustworthy even when product quality is high.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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