Say that a buyer of bonds values good bonds at $500 and values bad bonds at $250.

Question:

Say that a buyer of bonds values good bonds at $500 and values bad bonds at $250. Sellers of both good and bad bonds value them at $350. If the fraction of good sellers and bad sellers is 50%, then the maximum price an uninformed buyer will pay is ____ and this ___ high enough to sustain trade in both types of bonds.
a. $375; is not
b. $350; is not
c. $375; is
d. $350; is