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# Suppose buyers are willing to pay $125 for a plum (high-quality) used camera and$25

wrote...
Posts: 205
A month ago

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
Textbook
 Survey of Economics: Principles, Applications and Tools Edition: 6th Authors: O'Sullivan, Sheffrin, Perez
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A month ago
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A month ago
 I appreciate what you did here, answered it correctly
wrote...
A month ago
 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
wrote...
A month ago
 10
wrote...
A month ago
 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.
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A month ago
 25/35
wrote...
A month ago
 This calls for a celebration
wrote...
A month ago
 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.
wrote...
A month ago
 10/35
wrote...
A month ago
 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
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A month ago
 20
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A month ago
 Thanks
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