There are many sellers and even more buyers in a used car market. Each seller has one car to sell. There are cars are of two qualities. Type A cars never break down and type B cars break down within a year with probability 1/3. Sellers and buyers value a car that works at 900 and 1200 respectively. All agents have zero value for a car that suffers a break down. Sellers know the type of own car, while buyers know that a fraction 1/5 of the sellers have type A cars. Question In the market equilibrium Responses