Scenario: You walk into a used car lot to buy your first car. However, you are not sure of the quality of the cars in the lot and expect one-third of them to be of poor quality.
-Refer to the scenario above.Suppose you decide to buy a Toyota Corolla.You value the car at $10,000,but the car dealer values it at $8,500,which is not known to you.Which of the following is likely to be true?
A) You will end up buying a high-quality car.
B) You will end up buying a poor-quality car.
C) You will end up earning a positive consumer surplus.
D) You will choose not to buy the car.

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The Answer of Scenario: You walk into a used car lot to buy your first car. However, you are not sure of the quality of the cars in the lot and expect one-third of them to be of poor quality.
-Refer to the scenario above.Suppose you decide to buy a Toyota Corolla.You value the car at $10,000,but the car dealer values it at $8,500,which is not known to you.Which of the following is likely to be true?
A) You will end up buying a high-quality car.
B) You will end up buying a poor-quality car.
C) You will end up earning a positive consumer surplus.
D) You will choose not to buy the car.

Scenario: You Walk into a Used Car Lot to Buy