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Agency that ensures that approved veterinary medicines are relatively safe animals.
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- You buy a brand-new car and take good care of it. But after two months and just a thousand miles of driving, you decide you need something bigger and decide to sell your car. Compared to what you paid for it, what price should you expect to receive and why?-About what you paid for it, since it is barely used and buyers can verify its condition easily.-About what you paid for it, since adverse selection in the used car market means that almost-new cars are expected to be good quality.-Significantly less than what you paid for it. Selling a brand-new car is unusual and adverse selection suggests there is something wrong with it, so buyers will expect a major discount.-Significantly less than what you paid for it. Moral hazard suggests to buyers that you treated the car very badly for the two months you owned it.