The adverse selection problem suggests that:
◦ the ratio of plums (high quality) to lemons (low quality) is likely to be high.
◦ the price of lemons (low quality) will be below buyer's willingness to pay.
◦ plums (high quality) will sell for more than most buyers' willingness to pay.
◦ the ratio of lemons (low quality) to plums (high quality) is likely to be high.