Question 10, Text Exercise 1.6 > HW Score: 0%, 0 of 11 points Points: 0 of 1 Save Suppose that everyone in a used-car
Question 10, Text Exercise 1.6 > HW Score: 0%, 0 of 11 points Points: 0 of 1 Save Suppose that everyone in a used-car example is risk neutral, potential car buyers value lemons at $1,000 and good used cars at $4,000, the reservation price of lemon owners is $750, and the reservation price of owners of high-quality used cars is $1,750. The share of current owners who have lemons is 0. For what values of 0 do all the potential sellers sell their used cars? Describe the equilibrium. All used-car owners will be willing to sell their vehicles if 0 is such that 0 < (Enter a numeric response using a real number rounded to two decimal places.)
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