Question: Explain the lemons problem' as it applies to the used car market. Discuss: ) Why the lemons problem exists. (1 mark) it) The meaning of

Explain the lemons problem' as it applies to the used car market. Discuss: ) Why the lemons problem exists. (1 mark) it) The meaning of a 'lemon' and a 'peach' (1 mark) ) (1 mark) What the market price will be as a result of the lemons problem. iv) How the market resolves the lemons problem. (2 marks)

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