Because the presence of a warranty for a good is a signal that the good is of high quality,

A) consumers are willing and able to pay more for a good that carries a warranty.
B) consumers are willing to buy goods if and only if the goods come with warranties.
C) producers do not need to charge extra for warranties.
D) producers can use warranties to sort out high-risk customers.
E) producers must make warranties available on all goods.

Warranty

A guarantee, usually made by a seller to a buyer, promising to repair or replace a product if necessary within a specified period.

High Quality

The standard of something as measured against other similar things, indicating it is of superior grade.

Signaling

The action of conveying information about oneself or one's intentions to others, often seen in economics and job markets where candidates signal their value through education or other credentials.