Consider a used car market in which half the cars are good and half are bad (lemons). If buyers are rational, the prices being offered for used cars will result in: a) an equal proportion of good cars and lemons being sold in an inefficient market. b) a larger proportion of good cars being sold and consequently, consumer surplus is increased. c) a larger proportion of lemons being sold and consequently, producer surplus is increased. d) an equal proportion of a good cars and lemons being sold in an efficient market.
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Home » Business » Consider a used car market in which half the cars are good and half are bad (lemons). If buyers are rational, the prices being offered for used cars will result in: a) an equal proportion of good cars and lemons being sold in an inefficient market.