suppose the market for used canoes has 100 sellers with canoes in good condition and 100 sellers with canoes in bad condition. there are an unlimited number of potential buyers. buyers are willing to pay $400 for canoes in good condition while the sellers value these canoes at $300. buyers are willing to pay $100 for canoes in bad condition while the sellers value these canoes at $50. only the sellers know the condition of their canoe.