Suppose that in a market for used cars, there are good used cars ...

[anjilletteb]

Suppose that in a market for used cars, there are good used cars and bad used cars (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?
  A) Most used cars offered for sale will be lemons.
  B) Both good used cars and lemons will sell for 4,500 each.
  C) Only lemons will sell, for 800 each.
  D) Both good used cars and lemons will sell for 1,000 each.

Question 2

All else equal, as the price of a product falls, the quantity supplied increases.
 
  Indicate whether the statement is true or false

[bimper21]

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[anjilletteb]

Wow, this really help

[ryansturges]

Thanks for the timely response, appreciate it