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Adverse selection (10 points) The supply of high quality good is MCH = 40 + Q H ; The demand of high-quality good is P

Adverse selection (10 points) The supply of high quality good is MCH = 40 + Q_H ; The demand of high-quality good is P_H = 100 The supply of low quality good is Q_L ; The demand of low quality good is P_L = 50

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