Title: Suppose buyers are willing to pay $300 for a plum (high-quality) used refrigerator and $100 for a ...
Post by: baileymeredith on Jul 20, 2019
Figure 14.3 represents the market for used refrigerators. Suppose buyers are willing to pay $300 for a plum (high-quality) used refrigerator and $100 for a lemon (low-quality) used refrigerator. If buyers believe that 50% of the used refrigerators in the market are lemons (low quality), how much will they be willing to pay for a used refrigerator?
▸ $100
▸ $200
▸ $250
▸ $300
Title: Suppose buyers are willing to pay $300 for a plum (high-quality) used refrigerator and $100 for a ...
Post by: emr21 on Jul 20, 2019
Content hidden
Title: Suppose buyers are willing to pay $300 for a plum (high-quality) used refrigerator and $100 for a ...
Post by: rsbains on Jul 20, 2019
Figure 14.3 represents the market for used refrigerators. Suppose buyers are willing to pay $300 for a plum (high-quality) used refrigerator and $100 for a lemon (low-quality) used refrigerator. If buyers believe that 50% of used refrigerators in the market are lemons (low quality), how many plums (high quality) will be supplied by sellers?
▸ 50
▸ 125
▸ 175
▸ 250
Title: Suppose buyers are willing to pay $300 for a plum (high-quality) used refrigerator and $100 for a ...
Post by: christinaalex on Jul 20, 2019
50
Title: Suppose buyers are willing to pay $300 for a plum (high-quality) used refrigerator and $100 for a ...
Post by: rsbains on Jul 20, 2019
Thanks
Title: Suppose buyers are willing to pay $300 for a plum (high-quality) used refrigerator and $100 for a ...
Post by: Hernando G. on Jul 20, 2019
Figure 14.3 represents the market for used refrigerators. Suppose buyers are willing to pay $300 for a plum (high-quality) used refrigerator and $100 for a lemon (low-quality) used refrigerator. If buyers believe that 50% of used refrigerators in the market are lemons (low quality), what fraction of used refrigerators sold will actually be lemons (low quality)?
▸ 50/300
▸ 250/300
▸ 50/250
▸ All of the refrigerators sold will be lemons.
Title: Suppose buyers are willing to pay $300 for a plum (high-quality) used refrigerator and $100 for a ...
Post by: h00304413 on Jul 20, 2019
250/300
Title: Suppose buyers are willing to pay $300 for a plum (high-quality) used refrigerator and $100 for a ...
Post by: dupoyjohn134 on Jul 20, 2019
Figure 14.3 represents the market for used refrigerators. Suppose buyers are willing to pay $300 for a plum (high-quality) used refrigerator and $100 for a lemon (low-quality) used refrigerator. If buyers believe that 50% of used refrigerators in the market are lemons (low quality), what fraction of used refrigerators sold will actually be plums (high quality)?
▸ 50/250
▸ 250/300
▸ 50/300
▸ None of the refrigerators sold will be plums.
Title: Suppose buyers are willing to pay $300 for a plum (high-quality) used refrigerator and $100 for a ...
Post by: sarahlouhigg on Jul 20, 2019
50/300
Title: Suppose buyers are willing to pay $300 for a plum (high-quality) used refrigerator and $100 for a ...
Post by: dupoyjohn134 on Jul 20, 2019
Thanks
Title: Suppose buyers are willing to pay $300 for a plum (high-quality) used refrigerator and $100 for a ...
Post by: Skizzle234 on Jul 20, 2019
Figure 14.3 represents the market for used refrigerators. Suppose buyers are willing to pay $300 for a plum (high-quality) used refrigerator and $100 for a lemon (low-quality) used refrigerator. Initially buyers believe that 50% of used refrigerators in the market are lemons (low quality). Compared to the outcome with neutral expectations, how many fewer refrigerators are sold in equilibrium?
▸ 50
▸ 125
▸ 175
▸ 250
Title: Suppose buyers are willing to pay $300 for a plum (high-quality) used refrigerator and $100 for a ...
Post by: ShayT0923 on Jul 20, 2019
175
Title: Suppose buyers are willing to pay $300 for a plum (high-quality) used refrigerator and $100 for a ...
Post by: barry1999 on Jul 20, 2019
Figure 14.3 represents the market for used refrigerators. Suppose buyers are willing to pay $300 for a plum (high-quality) used refrigerator and $100 for a lemon (low-quality) used refrigerator. Compared to the situation when buyers have neutral expectations, if buyers believed that fewer than 50% of used refrigerators are lemons (low-quality):
▸ more plums (high-quality) used refrigerators would be on the market.
▸ fewer plums (high-quality) used refrigerators would be on the market.
▸ the same total number of used refrigerators would be on the market, but more of them would be plums (high-quality) used refrigerators.
▸ fewer lemons (low-quality) used refrigerators would be on the market.
Title: Suppose buyers are willing to pay $300 for a plum (high-quality) used refrigerator and $100 for a ...
Post by: Kaajalp on Jul 20, 2019
more plums (high-quality) used refrigerators would be on the market.
Title: Suppose buyers are willing to pay $300 for a plum (high-quality) used refrigerator and $100 for a ...
Post by: barry1999 on Jul 20, 2019
Good timing, thanks!