The table below shows some hypothetical data on the costs associated with the use of a liter of gasoline in a european country.
1. in euros, what is the private cost for an individual of a liter of gasoline in europe?
cost (euros)
cost of imported oil 0.5
cost of refining oil to gasoline 1
cost of distributing and selling gasoline 0.75
government taxes 2.5
cost of pollution from one liter of gasoline 2

Many potential buyers value high-quality used cars at the full-information market price of € p1 and lemons at € p2. a limited number of potential sellers value high-quality cars at € v1 ≤ p1 and lemons at € v2 ≤ p2. everyone is risk neutral. the share of lemons among all the used cars that might be potentially sold is € θ . suppose that the buyers incur a transaction cost of $200 to purchase a car. this transaction cost is the value of their time to find a car. what is the equilibrium? is it possible that no cars are sold