In the used car market with warranties,the equilibrium is a ________ and there is ________.
A) pooling equilibrium; inefficiency, partly because of oversupply of good cars
B) pooling equilibrium; inefficiency, partly because of oversupply of lemons (poor quality used cars)
C) separating equilibrium; no inefficiency
D) separating equilibrium; inefficiency, partly because of oversupply of lemons (poor quality used cars)
E) pooling equilibrium; no inefficiency

Question

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The Answer of In the used car market with warranties,the equilibrium is a ________ and there is ________.
A) pooling equilibrium; inefficiency, partly because of oversupply of good cars
B) pooling equilibrium; inefficiency, partly because of oversupply of lemons (poor quality used cars)
C) separating equilibrium; no inefficiency
D) separating equilibrium; inefficiency, partly because of oversupply of lemons (poor quality used cars)
E) pooling equilibrium; no inefficiency

In the Used Car Market with Warranties,the Equilibrium Is a ________