In the Used Car Market with Warranties,the Equilibrium Is a ________

Multiple Choice

In the used car market with warranties,the equilibrium is a ________ and there is ________.

A) pooling equilibrium; inefficiency, partly because of oversupply of good cars
B) pooling equilibrium; inefficiency, partly because of oversupply of lemons (poor quality used cars)
C) separating equilibrium; no inefficiency
D) separating equilibrium; inefficiency, partly because of oversupply of lemons (poor quality used cars)
E) pooling equilibrium; no inefficiency