4. a) There are three kinds of cars in the market. Buyers and sellers are risk neutral. Sellers know the quality of the car but buyers do not have the same information. Low Quality Medium Quality High Quality Value to Seller $1,000 $1,500 $2,000 Value to buyers $1,200 $1,700 $2,200 Proportion of cars 10% 30% 60% Derive a possible price in the market