What do you understand by the term ‘adverse selection’? Discuss with the reference to market for lemons.

Adverse Selection:

Adverse selection refers to a situation in which one party in a transaction possesses more information about a product or its qualities than the other party. This information asymmetry can lead to a market failure where the party with better information takes advantage of the situation, leading to an imbalance in the market. Adverse selection is often associated with lower-quality products driving out higher-quality ones from __________ _______ _____ _____ ________ ________ ____ _________ ______ ________ ________ ________.
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