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-The Market for Used Cars Is Shown in the Above

Question 23

Multiple Choice

  -The market for used cars is shown in the above figure.Neither buyers nor sellers can tell whether any given car is a lemon.Forty percent (40%) of all cars are lemons.Which of the following statements is true? A)  All of the cars will be sold at $1,600. B)  Sellers of good-quality cars are implicitly subsidizing the sellers of lemons. C)  The information is symmetric and the market is efficient. D)  All of the above.
-The market for used cars is shown in the above figure.Neither buyers nor sellers can tell whether any given car is a lemon.Forty percent (40%) of all cars are lemons.Which of the following statements is true?


A) All of the cars will be sold at $1,600.
B) Sellers of good-quality cars are implicitly subsidizing the sellers of lemons.
C) The information is symmetric and the market is efficient.
D) All of the above.

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