Consider a Used Car Market in Which Half the Cars

Question 56
Multiple Choice

Consider a used car market in which half the cars are good and half are bad (lemons).A rational buyer in this market should A) offer to pay a price equal to the most she would pay for a good car. B) offer to pay a price equal to the most she would pay for a lemon. C) offer to pay a price somewhere between the price she would pay for a good car and the price she would pay for a lemon. D) save up and buy a new car.