Peter has a really terrible toothache and decides to go and see Marge, his dentist. Marge recommends Peter has all his back teeth removed and a partial denture put in. This procedure would be very expensive and Peter is unsure what to do.

Which of the following statements are true:

1. This is an example of a Lemons Market as Marge is trying to pass off a lower quality product as the best one for Peter.
2. Peter should go to every other dentist in his area to gain other opinions before he makes the decision.
3. Peter will receive the optimal dental care due to Marge being an expert and possessing more information than Peter.
4. The above situation constitutes a form of market failure since Peter is not fullyinformedand has limited access to information in making a decision.