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Looking for assistance in solving the below query. Many Thx! Outside of town there is a large empty space. Every Saturday it is used as

Looking for assistance in solving the below query. Many Thx!

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Outside of town there is a large empty space. Every Saturday it is used as an open market for used cars. Potential buyers attend the market to buy a used car and car owners try to sell their car. For simplicity, assume that there are only two types of used cars, high-quality and "Lemons". Each Saturday, 5,000 potential buyers visit the market. They are identical in terms of their willingness to pay (WTP). If they knew the quality of the car they were buying, they would pay up to $10,000 for a high-quality car and only up to $7000 for a lemon. Potential sellers would be willing to sell their car for no less than $8,000 if it's a high-quality, and for no less than $5,000 if it's a lemon. About 600 sellers attend the market each Saturday. It is well known that, on average, only 25% of used cars are of high-quality. First, assume that sellers have no idea of the quality of their own car and buyers also have no way to inspect and find out the quality of the car they are buying. All market participants are risk neutral. a. (100 points) What is the equilibrium price in this market? What are the sellers' profits? What is the value created to buyers, and what is the total value created in this market? Please show your work

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