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Suppose cars are known to have a uniformly distributed quality '0 from 10000 to 30000. Suppose that sellers value a car of quality 1) at
Suppose cars are known to have a uniformly distributed quality '0 from 10000 to 30000. Suppose that sellers value a car of quality 1) at utility 11,300) = v, and buyers value a car of quality '0 at utility 153(0) = Ev. Suppose only sellers know the quality of their car. Given a price p, sellers and buyers can decide whether to sell/ buy a car, as in class. (a) At what price p is the highest proportion of cars sold? (b) At the price above, what cars are sold
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