All used cars are lemons or peaches. Owners know whether or not their car is a lemon, but buyers do not;

that is, the quality of a car is private information. There are many more buyers than sellers. Buyers value a peach at $2,000 and a lemon at $100; owners value a peach at

$1,500 and a lemon at $50. Owners can have their cars inspected for $50. If they do have their car inspected, they will receive a certificate that shows whether the car is a lemon or a peach. Show that owners of peaches will have their cars inspected and will sell those cars for $2,000.

Show also that the owners of lemons will not obtain a certificate and will sell their cars for $100.