Title: Suppose buyers are willing to pay $125 for a plum (high-quality) used camera and $25
Post by: lmalma on Jul 20, 2019
Figure 14.2 represents the market for used cameras. Suppose buyers are willing to pay $125 for a plum (high-quality) used camera and $25 for a lemon (low-quality) used camera. If buyers believe that 50% of the used cameras in the market are lemons (low quality), how much will pay for a used camera?
▸ $25
▸ $50
▸ $75
▸ $125
Title: Suppose buyers are willing to pay $125 for a plum (high-quality) used camera and $25
Post by: Strategyboyz21 on Jul 20, 2019
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Title: Suppose buyers are willing to pay $125 for a plum (high-quality) used camera and $25
Post by: lmalma on Jul 20, 2019
I appreciate what you did here, answered it correctly :D
Title: Suppose buyers are willing to pay $125 for a plum (high-quality) used camera and $25
Post by: PiMaster314 on Jul 20, 2019
Figure 14.2 represents the market for used cameras. Suppose buyers are willing to pay $125 for a plum (high-quality) used camera and $25 for a lemon (low-quality) used camera. If buyers believe that 50% of used cameras in the market are lemons (low quality), how many plums (high quality) will be supplied by sellers?
▸ 10
▸ 15
▸ 20
▸ 25
Title: Suppose buyers are willing to pay $125 for a plum (high-quality) used camera and $25
Post by: Kaajalp on Jul 20, 2019
10
Title: Suppose buyers are willing to pay $125 for a plum (high-quality) used camera and $25
Post by: Yeeeee89 on Jul 20, 2019
Figure 14.2 represents the market for used cameras. Suppose buyers are willing to pay $125 for a plum (high-quality) used camera and $25 for a lemon (low-quality) used camera. If buyers believe that 50% of used cameras in the market are lemons (low quality), what fraction of used cameras sold will actually be lemons (low quality)?
▸ 10/35
▸ 25/35
▸ 10/25
▸ All of the cameras sold will be lemons.
Title: Suppose buyers are willing to pay $125 for a plum (high-quality) used camera and $25
Post by: ccnastopoulos on Jul 20, 2019
25/35
Title: Suppose buyers are willing to pay $125 for a plum (high-quality) used camera and $25
Post by: Yeeeee89 on Jul 20, 2019
This calls for a celebration :raised_hands:
Title: Suppose buyers are willing to pay $125 for a plum (high-quality) used camera and $25
Post by: uni67 on Jul 20, 2019
Figure 14.2 represents the market for used cameras. Suppose buyers are willing to pay $125 for a plum (high-quality) used camera and $25 for a lemon (low-quality) used camera. If buyers believe that 50% of used cameras in the market are lemons (low quality), what fraction of used cameras sold will actually be plums (high quality)?
▸ 10/25
▸ 25/35
▸ 10/35
▸ None of the cameras sold will be plums.
Title: Suppose buyers are willing to pay $125 for a plum (high-quality) used camera and $25
Post by: aishasu on Jul 20, 2019
10/35
Title: Suppose buyers are willing to pay $125 for a plum (high-quality) used camera and $25
Post by: Famwam on Jul 20, 2019
Figure 14.2 represents the market for used cameras. Suppose buyers are willing to pay $125 for a plum (high-quality) used camera and $25 for a lemon (low-quality) used camera. Initially buyers believe that 50% of used cameras in the market are lemons (low quality). Compared to the outcome with neutral expectations, how many fewer cameras are sold in equilibrium?
▸ 10
▸ 15
▸ 20
▸ 25
Title: Suppose buyers are willing to pay $125 for a plum (high-quality) used camera and $25
Post by: jaded 7 on Jul 20, 2019
20
Title: Suppose buyers are willing to pay $125 for a plum (high-quality) used camera and $25
Post by: Famwam on Jul 20, 2019
Thanks