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 $40, a B car is worth $20, and a U car is worth $15.The seller knows the precise quality of his car, but the buyer cannot distinguish the difference in the quality of a car offered for sale.There is an equal probability of a car being G, B, or U.
-In equilibrium, which car is offered for sale and at what price?

A) B and U, at a price = $25
B) U only, at a price = $17.5
C) U only, at a price = $15
D) U only, at a price = $0
E) No car will be offered for sale since the rational expectations price is $0