People expect the value of houses they buy to appreciate over time. New cars, on the other hand, depreciate over time. The depreciation rate is highest during the first year (about \(20 \%\) on average). Part of first-year depreciation is normal; just like any capital asset, cars wear out over time. Part of the depreciation reflects market power; the market for new cars is an oligopoly whereas the market for used cars is more competitive. Part of the depreciation reflects obsolescence; a new model with new functions and features will come out within the year. But could the high first-year depreciation rate also indicate a lemons problem? Explain.