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The market for used sea kayaks has both a high-quality and low-quality variety. High-quality kayaks are valued at $3,000 and low-quality ones at $800. Supply

The market for used sea kayaks has both a high-quality and low-quality variety. High-quality kayaks are valued at $3,000 and low-quality ones at $800. Supply of used high-quality kayaks is QH = 0.5PH 1,000, and the supply of used low-quality kayaks is QL = PL 500. Potential buyers cannot distinguish between a high-quality and a low-quality used kayak. Buyers believe that only 3 of 10 used kayaks are high-quality. What are buyers willing to pay and how many used sea kayaks will be sold?

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