Please answer the following questions and give the explanation.

1. Consider used-car market for the 2017 Citrus described in class. There is no a surge in demand for used Citruses; buyers would now be willing to pay up to $18,000 for an orange and $8,000 for a lemon. All else remains identical to the example in class. a. What price would buyers be willing to pay for a 2017 Citrus of unknown type if the fraction of oranges in the population, f, were 0.6. . Will there be a market for oranges if f=0.6? Explain. What price would buyers be willing to pay if f were 0.2? Will there be a market for oranges if f=0.2? Explain. 9993 What is the minimum value of f such that the market for oranges does not collapse? f. Explain why the increase in the buyers' willingness to pay changes the threshold value of f, where the market for oranges collapses. 2. Suppose electricians come in two types: competent and incompetent. Both types of electricians can get certified, but for the incompetent types, certification takes extra time and effort. Competent ones have to spend C months preparing for the certification exam; in competent ones take twice as long. Certified electricians can earn 10 (thousand dollars) each month working on building sites for licensed contractors. Uncertified electricians can earn only 2.5 (thousand dollars) each month in freelance work; licensed contractors won't hire them. Each type of electrician gets a payoff equal to S-T, where S is the monthly salary measured in thousand dollars and T is the number of months spent getting certified. What is the range of values of C for which a competent electrician will chose to use certification as a signaling device but an incompetent one will not? (Hint: there is no alternative opportunity in this question, so we just have to check incentive compatibility condition, not narticinatinn cnnditinnJ