Suppose that in the akerlof example there are only eight, Ask an Expert

Economics

Suppose that in the Akerlof example, there are only eight cars ranging in quality from 1/4 to 2 (there is no complete lemon). Hence, the mean quality level is 1.125. Determine whether the market disappears completely, and if not, how many cars will be sold.

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Microeconomics, Economics

Category:- Microeconomics
Reference No.:- M91233338

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