The Federal Reserve Open Market Committee allows representatives of the President and Congress to sit on its meetings

Scarcity is

A) a shortage of goods and services. B) poverty and misery. C) a situation in which the resources for producing the goods and services that people desire are sufficient to satisfy people's desires. D) a situation in which the resources required to produce the goods and services that people desire are insufficient to satisfy all wants.

Suppose that there are two types of cars, good and bad. The qualities of cars are not observable but are known to the sellers. Risk-neutral buyers and sellers have their own valuation of these two types of cars as follows:  Types of CarsBuyer's ValuationSeller's ValuationGood (50% probability)5,0004,500Bad (50% probability)3,0002,500When a buyer does not observe the quality, what is the highest price she will offer for a used car if she ignores adverse selection?

A. $4,500 B. $4,000 C. $2,500 D. $3,000