There Are Two Types of Used Cars, High Quality and Low

Multiple Choice

There are two types of used cars, high quality and low quality.Buyers cannot distinguish the two types until after they have purchased them.Owners of high-quality cars will sell them if the price is $2,000 or higher.Owners of low-quality cars will sell them if the price is $1,000 or higher.Buyers value a high-quality used car at $3,466 and a low-quality used car at $1,200.Suppose that 30% of used cars are of high quality and 70% of used cars are of low quality.In equilibrium,

A) all used cars will be sold.
B) only low-quality used cars will be sold.
C) no used cars will be sold.
D) only high-quality used cars will be sold.
E) high-quality used cars will sell for a uniformly higher price than low-quality used cars.