Question

Which economic problem do lemon laws try to correct and/or avoid?(1 point)
Responses

monopolies
monopolies

lack of competition
lack of competition

imperfect information
imperfect information

lack of resource mobility

Answer 1

Lemon laws try to correct and/or avoid **imperfect information**. These laws are designed to protect consumers from purchasing defective vehicles (often referred to as "lemons") by ensuring that sellers disclose problems and that buyers have recourse if they inadvertently purchase a faulty product.