At a swap meet, 10 sellers are each trying to sell a used 5.7-L Chevy engine. Half the engines are in mint condition, with each valued by its seller at $3,000. The other engines need repair, and each is valued by its seller at $1,000. Buyers value a mint engine at $3,500 and an engine that needs repair at $1,600. Sellers know whether their engine is in mint condition or needs repair, and buyers can distinguish between engines in mint condition and those needing repair. How many engines will be sold at the swap meet?
A) zero
B) 10
C) five mint engines and none that need repair
D) no mint engines and five that need repair

Question

Quizplus · Accepted Answer

All 10 engines will be sold because buyers can distinguish between mint and repair-needed engines and are willing to pay more than the sellers' valuations for both types.

At a Swap Meet, 10 Sellers Are Each Trying to Sell