Use the Following Information for Questions

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,
-Suppose the type G seller offers a warranty of $g and the type B seller offers $b.If the probability of failure is 0.1, 0.5, and 1 for types G, B, and U, respectively, what is the warranty offered by type G and B sellers to ensure incentive compatibility?

A) $20, $15
B) $25, $15
C) $30, $30
D) $37.5, $30
E) $37.5, $37.5