Consider a used car market in which half the cars are good and half are bad (lemons). if buyers are rational, the prices being offered for used cars will result in: a) an equal proportion of good cars and lemons being sold in an inefficient market. b) a larger proportion of good cars being sold and consequently, consumer surplus is increased. c) a larger proportion of lemons being sold and consequently, producer surplus is increased. d) an equal proportion of a good cars and lemons being sold in an efficient market.

The correct answer is option c.

Explanation:

The market for lemons refers to the market for second-hand cars. In such a market a consumer can find both goods cars or peaches as well as bad cars or lemons.  

A buyer is not aware whether the car he is buying is a lemon or a peach. So the buyers generally are willing to pay a lower price. A lower price motivates the seller to sell lemon instead of peaches or good cars.  

So asymmetrical information regarding the condition of the car leads to adverse selection.  

If buyers try to be rational and offer a lower price for a used car in order to reduce their risk, this will cause a larger portion of lemons to be sold n the market. This will increase the producer surplus.  

the first successful, urban blues recording, selling more than 75,000 copies, was made in year 1920.

mamie smith recorded the first commercially successful example of the urban blues,   with the recording of “crazy blues”."crazy blues" was recorded on august 10, 1920, in new york city. within a month of the release of “crazy blues” it had sold 75,000 copies.