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QUESTION 2 Consider the market for used cars. If advances in information technology allow for the tracking of vehicle histories and makes that information available to prospective buyers, allowing them to better judge the quality of an individual used car, what would you expect to happen in the market for used cars? (Hint Use the Model of Supply and Demand). Not enough information is given, and the impacts on market prices are ambiguous. O We would expect market prices to increase. We would expect market prices to decrease. We would expect no changes in market prices. QUESTION 3 In class we defined transaction costs as the price a consumer has to pay in a market transaction. O none of the above. O the costs associated with facilitating a market exchange, such as transportation costs, legal costs, and the costs of acquiring Information. O the costs associated with producing a good that will eventually be brought to market