14.Suppose Joe has a reliable two-year-old Honda Civic that's in excellent condition and that he wouldbe willing to sell for $13,000. Lauren, who is risk-neutral, is considering whether to buy Joe's car.She's willing to pay $14,000 for a two-year-old Honda Civic that is reliable and only S10,000 for onethat's not reliable. Lauren cannot tell whether Joe's car is reliable, but she believes that only 20 percentof two-year-old Hondas for sale in the market are reliable and that the other 80 percent are not reliable.To Lauren, Joe's car looks just like every other two-year-old Honda that's for sale. Which of thefollowing statements is NOT true?
(A) Lauren will not buy Joe's Car
(B) In the long run, the sales price of two-year old Hondas in the market will rise.
(C) In the long run, the quality of two-year old Honda Civics offered for sale will fall.
(D) One of"costly-to-fake" examples in this case for Joe is to offer a warranty to pay for major repairsafter selling the car.
(E) None of the above.