True or false

4. Indicate whether the statement is true or false, and justify your answer. Be sure to state any additional assumptions you may need. (1) If buyers care sufficiently more about cars than do sellers, then there are prices at which transactions can occur. In that scenario, there is no longer any adverse selection (although there still may be some information asymmetry). (2) The Akerlof model indicates that government intervention is the only way to solve the adverse selection problem. (3) Ultimately, the market unravels because buyers are risk averse. If buyers were risk neutral, there would always be prices at which cars would sell