3.3 Many potential buyers value high-quality used cars at the full-information market price of p1 and lemons at p2. A limited number of potential sellers value high-quality cars at v1 … p1 and lemons at v2 … p2. Everyone is risk neutral. The share of lemons among all the used cars that might potentially be sold is . Under what conditions are all the cars sold? When are only lemons sold? Are there any conditions under which no cars are sold? (Hint:

See Solved Problem 18.1.) M