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Question: jennifer is looking to sell her oneperson laser sail boat...

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Jennifer is looking to sell her one-person Laser sail boat, which she has kept in excellent condition. Ordinarily this type of sail boat sells second-hand for $4,000 but as Jennifer has looked after hers extremely well, she will only want to sell i for $4,600. Tom is looking to buy a second-hand sail boat and is willing to pay up to $4,900 for a boat in excellent condition. Tom has no inexpensive way to determine whether Jennifers boat is in good condition or not Answer the following questions: a. Thinking like an economist, would Tom definitely buy the boat from Jennifer? b. What is the DWL as a result of the inefficiency caused by the asymmetric information, if Tom did not buy the boat at Jennifers price? S c. Over the next ew months, the proportion o sa boats on the market that are in poor condition nses rom 78% to 86%, he second hand market forthese sail boats best fits Type Y for Yes or N for No Answer to the nearest whole dollar (with no decimal places) what description? issue. Type in M for Moral hazard, A for Asymmetric information, C for Competitive market, L for Lemons Model, P for Principal agent

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