He market for lemons consider a market in which there are many potential buyers and sellers of used cars. each potential seller has one car, which is either of high quality (a plum) or low quality (a lemon). a seller with a low-quality car is willing to sell it for $5,000, whereas a seller with a high-quality car is willing to sell it for $9,500. a buyer is willing to pay $6,000 for a low-quality car and $10,500 for a high-quality car. of course, only the seller knows whether a car is of high or low quality, as illustrated in the accompanying image. suppose that 80% of sellers have low-quality cars. assume buyers know that 80% of sellers have low-quality cars but are unable to determine the quality of individual cars. if all sellers offer their cars for sale and buyers have no way of determining whether a car is a high-quality plum or a low-quality lemon, the expected value of a car to a buyer is $ (hint: the expected value of a car is the sum of the probability of getting a low-quality car multiplied by the value of a low-quality car and the probability of getting a high-quality car multiplied by the value of a high-quality car.) suppose buyers are willing to pay only up to the expected value of a car that you found in the previous question. since sellers of low-quality cars are willing to sell for $5,000, while sellers of high-quality cars are willing to sell for $9,500, will willing to participate in this market at that price. a. only high-quality sellersb. only low-quality sellersc. all types of sellersd. no sellersthe dilemma in this problem is an example of which of the following economic concepts? a. adverse selectionb. moral hazardc. screeningd. signaling

Table 1. shows the expected demand for the dvd at different suggested donation levels, and they can act as a single-price monopolist if they choose to. thereceipts will be used to fund gstcg supplies for their data collection and conservation work. at the end of each sea turtle nesting season, any excess funds are donated by the gstcg to a local non-profit sea turtle research and rehabilitation facility. table 1 suggested anticipated total marginal profit donation per number of dvd revenue revenue dvd request requests $19.00 0 $15.00 2 $9.50 4 $7.75 10 $3.00 15 $0.00 20 a. complete table 1 by computing the total revenue, marginal revenue, and profit columns. b. the president wants the gstcg to provide videos to generate the most possible donations (total revenue). what price, if any, is the president of the gstcg favoring and how many people will receive the dvd if this becomes the price of the suggested donation? explain your answer. c. the education outreach committee wants the gstcg to provide videos to the highest possible number of people. what price, if any, is the educational outreach committee favoring and how many people will receive the dvd if this becomes the price of the suggested donation? explain your answer. d. the treasurer of the gstcg wants the dvd program to be as efficient as possible so that the marginal revenue equals marginal cost. what price, if any, is the treasurer favoring and how many people will receive the dvd if this becomes the price of the suggested donation? explain your answer. e. the fundraising committee wants the dvd program to generate as much profit in donations as possible. what price, if any, is the fundraising committee favoring and how many people will receive the dvd if this becomes the price of the suggested donation? explain your answer.