With asymmetric information, goods out of the market. Consider the case of lemons in the second hand car market. Assume that there are two types of cars: HQ (High Quality) and LQ (Low Quality) cars. Sellers know the quality of cars but the buyers do not. Half of the cars in the market are HQ and the other half is LQ. Thus the expected quality of a car bought in the market would be medim quality. This causes the HQ cars to quality of a car in the market falls. This further The process continues until all the HQ cars are driven out of the market. (34) quality goods can drive (35) quality (36) for (37). The quantity of HQ cars exchanged in the market falls. Thus the expected (39) for HQ cars. (38) the