You are in the market for a used 2013 Toyota Corolla. You know that half of the 2013 Corollas are lemons and half are peaches. If you could be assured that the Corolla you were buying was a peach, you would be willing to pay up to $12,000. On the other hand, you would only be willing to pay $4,000 for a lemon. You have no ability to discern whether any particular Corolla is a lemon or a peach. Sellers of Corollas, on the other hand, are likely to know whether their particular car is a lemon or a peach. Suppose sellers of lemons will sell their cars for $3,000 or more and peach sellers will be willing to sell their cars for $9,000 or more. Over time the price in the market for 2013 Corollas will
◦ be between $9,000 and $12,000 for peaches and between $3,000 and $4,000 for lemons and both lemons and peaches will be traded.
◦ be between $9,000 and $12,000 and only peaches will be traded.
◦ be between $3,000 and $4,000 for lemons and only lemons will be traded.
◦ be between $3,000 and $12,000 and both lemons and peaches will be traded.
Lake 226 at the Experimental Lakes Area divided in half.
Scientist We Lost in 2013
A slave market in Marrakesh, Morocco. This lithograph is from the 1800s.
Leading Sites of New Cases of Cancer in the United States, 2013
Main Hall, Trajan's Market
Hydroelectric power: 2013 Global Market