SQ4_Information(1)

Explain b now suppose that sellers have private

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Unformatted text preview: willing to sell them for any price at or above $8,000, and people own lemons are willing to sell them for any price above $2000. a. If you can tell whether cars or lemons or plums, are you likely to trade with someone who owns a plum? Explain. b. Now suppose that sellers have private information about whether the cars they’re selling a...
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This note was uploaded on 02/13/2014 for the course ECON 2 taught by Professor Kim during the Winter '08 term at UCSD.

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