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Business, 30.05.2020 23:58 bxbykay1

Suppose that everyone in a used-car example is risk neutralLOADING..., potential car buyers value lemons at $1 comma 000 and good used cars at $2 comma 000, the reservation price of lemon owners is $750, and the reservation price of owners of high-quality used cars is $1 comma 500. The share of current owners who have lemons is theta. For what values of theta do all the potential sellers sell their used cars? Describe the equilibrium.

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