17. Augustus bought his BMW convertible as a new car in 1998 and knows that it is in excellent condition. He now wants to sell it and knows that there are many other similar cars on the used car market that are lemons. As a result: (A) he should be able to sell my car at a premium price because of its excellent condition. (B) he will have to accept a lower price for his car because buyers might think that it is a lemon. (C) he will not be able to sell his car unless he offers some sort of guarantee. (D) he will get the best price for his car by selling it to a dealer.

17. Augustus bought his BMW convertible as a new car in 1998 and knows that it is in excellent condition. He now wants to sell it and knows that there are many other similar cars on the used car market that are lemons. As a result: (A) he should be able to sell my car at a premium price because of its excellent condition. (B) he will have to accept a lower price for his car because buyers might think that it is a lemon. (C) he will not be able to sell his car unless he offers some sort of guarantee. (D) he will get the best price for his car by selling it to a dealer.

Principles of Economics, 7th Edition (MindTap Course List)

7th Edition

ISBN:9781285165875

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter27: The Basic Tools Of Finance

Section: Chapter Questions

Problem 5PA

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