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9. Consider three types of cars and the following information: DESCRIPTION GOOD UGLY BAD BUYER'S VALUE $14,000 $9,000 $5,500 SELLER'S VALUE $12,500 $8,000 $4.000 COMPOSITION

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9. Consider three types of cars and the following information: DESCRIPTION GOOD UGLY BAD BUYER'S VALUE $14,000 $9,000 $5,500 SELLER'S VALUE $12,500 $8,000 $4.000 COMPOSITION 6 7 2 A buyer cannot distinguish the quality of cars offered for sale but the seller can. If we assume risk neutrality which car(s) will be offered for sale and at what price? (Show calculations for the information asymmetry case.)

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