In the used car market, suppose there are nine car owners who are considering selling. The quality of their cars, Q, is 0, 1?4, 1?2, 3?4, 1, 1 1?4, 1 1?2, 1 3?4, and 2. The sellers reservation price is $5,000*Q, and the buyers reservation price is $7,500*Q.

(a) If the market price for a used car is $10,000, how many car owners would like to sell?

(b) Based on expected quality, how many buyers would purchase a car?

(c) Describe intuitively how asymmetric affects the market for used cars. Are there any equi librium prices so that supply equals demand?