Consider the market for lemons problem Suppose there are six cars of quality Q, distributed evenly from Q 75 to Q 2 Buyers value Q at $800 sellers at $600 Sellers know the Q for their cars with certainty, but buyers cannot and therefore assume the average Q How many cars sell Is there market failu...

In this case there would be three cars that sell The buyers wo ...

Consider the market for lemons problem. Suppose there are six cars of quality Q, distributed evenly...

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Microeconomics

ISBN: 9781464146978

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Authors: Austan Goolsbee, Steven Levitt, Chad Syverson

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Consider the market for lemons problem. Suppose there are six cars of quality Q, distributed evenly...

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