Based on the following table,what is the highest price that risk-neutral buyers will offer for a used car if they recognize adverse selection?
$$\begin{array} { | l | l | l | }
\hline \text { Types of Cars } & \text { Buyer's Valuation } & \text { Seller's Valuation } \
\hline \begin{array} { l }
\text { Good } \
\text { (50\% probability) }
\end{array} & 10,000 &9,500 \
\hline \begin{array} { l }
\text { Bad } \
\text { (50\% probability) }
\end{array} & 5,000 & 4,500 \
\hline
\end{array}$$

Question

Based on the following table,what is the highest price that risk-neutral buyers will offer for a used car if they recognize adverse selection?
$$\begin{array} { | l | l | l | } 
\hline \text { Types of Cars } & \text { Buyer's Valuation } & \text { Seller's Valuation } \
\hline \begin{array} { l } 
\text { Good } \
\text { (50\% probability) }
\end{array} & 10,000 &9,500 \
\hline \begin{array} { l } 
\text { Bad } \
\text { (50\% probability) }
\end{array} & 5,000 & 4,500 \
\hline
\end{array}$$

Quizplus · Accepted Answer

The Answer of Based on the following table,what is the highest price that risk-neutral buyers will offer for a used car if they recognize adverse selection?
$$\begin{array} { | l | l | l | } 
\hline \text { Types of Cars } & \text { Buyer's Valuation } & \text { Seller's Valuation } \
\hline \begin{array} { l } 
\text { Good } \
\text { (50\% probability) }
\end{array} & 10,000 &9,500 \
\hline \begin{array} { l } 
\text { Bad } \
\text { (50\% probability) }
\end{array} & 5,000 & 4,500 \
\hline
\end{array}$$

Based on the Following Table,what Is the Highest Price That