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Suppose you own a plum (high-quality) used car that you are thinking about selling. Further, suppose you know that buyers assume that there is a 30% chance of getting a plum, and that 8 of 10 cars currently in the used car market are lemons (low-quality). Would you likely sell your car?
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Survey of Economics: Principles, Applications and Tools


Edition: 6th
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You are more likely to do so than you typically would. Since buyers overestimate the probability of getting a plum, you know that you can get a better price than you normally would by entering the market.
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