Chapter 14 - Imperfect Information: Adverse Selection and Moral Hazard - Exercises - 14.1 Adverse Selection for Buyers: The Lemons Problem - Page 333: 1.2

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The supply curve of high-quality cars live ABOVE the supply curve of lower-quality cars. High-quality (plum) cars cost more to produce and maintain, so sellers require higher prices to supply them. Therefore, at any given quantity, the price (supply price) for high-quality cars is higher than for low-quality (lemon) cars.