-The Market for Used Cars Is Shown in the Above

Multiple Choice

-The market for used cars is shown in the above figure.Neither buyers nor sellers can tell whether any given car is a lemon.Forty percent (40%) of all cars are lemons.Which of the following statements is TRUE?

A) All of the cars will be sold at $1,600.
B) Sellers of good-quality cars are implicitly subsidizing the sellers of lemons.
C) The information is symmetric and the market is efficient.
D) All of the above.