Business
Business, 16.12.2019 20:31, liltrewill7008

Suppose that in a market for used cars, there are good used cars and bad used cars (lemons). about half of the cars are lemons. consumers are willing to pay as much as $6,000 for a good used car but only $1,000 for a lemon. sellers of good used cars value their cars at $5,000 each and sellers of lemons value their cars at $800 each. buyers cannot tell if a used car is reliable or is a lemon. based on this information, what is the likely outcome in the market for used cars?

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