In the lemons model, there is only one price even though the products differ in quality. Why

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In the lemons model, there is only one price even though the products differ in quality. Why is that? What factors deter-mine that price? How does the price affect the quantities traded of the different quality goods?

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Microeconomics Theory and Applications

ISBN: 978-1118758878

12th edition

Authors: Edgar K. Browning, Mark A. Zupan

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Question Posted: Nov 14, 2014 08:28 AM

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In the lemons model, there is only one price even though the products differ in quality. Why

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There is only one price because the buyers are uncertain concer...View the full answer

Microeconomics Theory and Applications

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