The market for used cars is shown in the above figure. Neither buyers

The market for used cars is shown in the above figure. Neither buyers nor sellers can tell whether any given car is a lemon. Forty percent (40%) of all cars are lemons. Which of the following statements is TRUE?

A) All of the cars will be sold at $1,600.
B) No cars will be sold.
C) Only lemons are sold for $1,000.
D) Only good cars will be sold for $2,000.

ANSWER

A