Based on your understanding of asymmetric information, why would you expect the price of a brand new car to fall immediately after it is bought and driven off the lot?
a. Because it is very expensive to bring the car back on the lot. It has to be washed and vacuumed and recertified.
b. If the owner tried to sell it soon after she bought it, people will place a high probability that something is wrong with the car.
c. The owner might be a smoker and the car might not smell as nice as when it is genuinely new.
d. Speculators drive the price of a used car down.
