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Sellers of used cars know the cars' quality, but buyers do not. Imagine that used Toyota Corollas are worth $10,000 if they are of high

Sellers of used cars know the cars' quality, but buyers do not. Imagine that used Toyota Corollas are worth $10,000 if they are of high quality and $5,000 if they are of low quality. Although buyers may not know the quality of a specific car, they do know that 25 percent of the used Corollas will be of high quality. In such a market, what cars will be sold on the used car market and at what price?

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