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2. A website offers a place for people to buy andsell emeralds, but information aboutemeralds can...

2. A website offers a place for people to buy andsell emeralds, but information aboutemeralds can be quite imperfect. Thewebsite then enacts a rule that all sellers inthe market must pay for two independentexaminations of their emerald, which areavailable to the customer for inspection.
a. How would you expect this improved information toaffect demand for emeralds on this website?

b. How would you expect this improvedinformation to affect the quantity of high-quality emeralds sold on the website?

c. Sketch the effects in part (a) and (b) on asingle supply and demand diagram. Whatprediction would you make about how theimproved information alters the equilibriumquantity and price?
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