The market for used sea kayaks has both a high-quality and a low-quality variety. High-quality kayaks...

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The market for used sea kayaks has both a high-quality and a low-quality variety. High-quality kayaks are valued at $3,000, and low-quality kayaks are valued at $800. The 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 high-quality and low-quality used kayaks. Buyers believe that only 3 of every 10 used kayaks are high quality. In this market, low-quality used kayaks will be sold. 960 2,000 270 0 The market for used sea kayaks has both a high-quality and a low-quality variety. High-quality kayaks are valued at $3,000, and low-quality kayaks are valued at $800. The 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 high-quality and low-quality used kayaks. Buyers believe that only 3 of every 10 used kayaks are high quality. In this market, low-quality used kayaks will be sold. 960 2,000 270 0