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Consider our standard market for lemons model, where buyers are willing to pay $1500 per average quality unit in the market, Q. Sellers want $1,000
Consider our standard market for lemons model, where buyers are willing to pay $1500 per average quality unit in the market, Q. Sellers want $1,000 per Q. As shown on figure 2, there are 10 cars with Q 's ranging from 1/20 to 2 . Start the action at $1500. How many cares are sold? Is there market failure
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