Question: Please help with this practice question. Suppose there are 100 potential buyers of used sofas and 100 potential sellers Buyers value a high quality used

Please help with this practice question.

Please help with this practice question. Suppose there are 100 potential buyers

Suppose there are 100 potential buyers of used sofas and 100 potential sellers Buyers value a high quality used sofa at $350 and a low quality used sofa at $200. There are 3 types of sellers: 40 of them are selling a low quality sofas and are willing to sell at any price above $100.10 ofthem are selling a high quality sofas and are willing to sell at any price above $200, and SD ofthem are selling a high quality sofa and are willing to sell at any price above $300. Buyers cannot differentiate between sellers of high quality sofas and sellers of low quality sofas. At what price will this market for used sofas stabilize? (i.e. the buyers' expected proportion of sofas that are low quality is equal to the actual proportion ofsolcl sofas that are low quality.) (Note: Don't add the dollar sign when inputting your answer.) What percentage of used sofas actually sold will be low quality? (Note: Don't add the percentage sign when inputting your answer.)

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