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Author Question: Suppose there are only two kinds of cars in the market for used cars: lemons and good cars. A lemon ... (Read 622 times)

notis

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on: May 24, 2019
Suppose there are only two kinds of cars in the market for used cars: lemons and good cars. A lemon is worth $1,000 both to its current owner and to anyone who buys it. A good car is worth $8,000 to its current and potential owners. Buyers can't tell whether a car is a lemon until after they have bought the car, and there is no warranty. What is the equilibrium price of a used car?
◦ $8,000
◦ $1,000
◦ $4,500
◦ $9,000
◦ The equilibrium price depends on how many lemons and how many good cars are traded.
Foundations of Microeconomics ¦ Bade, Parkin ¦ 8th Edition
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Marked as best answer by notis on May 24, 2019

dreamfighter72

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Reply #1 on: May 24, 2019
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
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notis

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Reply #2 on: May 24, 2019
Thanks


dreamfighter72

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Reply #3 on: May 24, 2019
Welcome :)


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