Multiple Choice
Use the following information for questions
There are three types of cars, the good G, the bad B, and the ugly U.A G car is worth $30, a B car is worth $15, and a U car is worth $0.A buyer cannot distinguish the quality of cars offered for sale, but the seller does.If there is equal probability of a car being G, B, or U,
-which car is offered for sale in equilibrium and at what price?
A) B and U, at a price = $15.
B) U only, at a price = $15.
C) U only, at a price = $0.
D) All cars will be offered for sale, at a price = $30.
E) No cars will be offered for sale.
Correct Answer:

Verified
Correct Answer:
Verified
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