In Akerlof's lemon law model If potential buyers cannot ascertain the real quality

of a used car but have a decent notion of what average quality is worth, this leads

to:

a. Buyers will offer a price commensurate with average quality

b. Sellers of above average cars will withhold them from the market

c. A vicious cycle will ensue in which average quality and hence offered

prices will decline leading to a decline in average quality offered...

d. In severe cases, the market may shrink significantly or even cease to exist

e. All of the above