Top Posters
Since Sunday
25
j
23
21
j
21
D
21
z
20
i
19
v
19
a
18
a
18
s
18
a
18
New Topic  
wrote...
Posts: 206
Rep: 0 0
A month ago



Figure 14.4 represents the market for used 12 megapixel digital cameras. Suppose buyers are willing to pay $400 for a plum (high-quality) used digital camera and $200 for a lemon (low-quality) used digital camera. If buyers believe that 50% of used digital cameras in the market are lemons (low quality), what is consumers' willingness to pay ($W)?

▸ $100

▸ $200

▸ $300

▸ $400
Textbook 

Survey of Economics: Principles, Applications and Tools


Edition: 6th
Authors:
Read 267 times
12 Replies
Replies
Answer verified by a subject expert
wrote...
Posts: 224
A month ago
Sign in or Sign up in seconds to unlock everything.
$300
1
Answer accepted by topic starter
wrote...
A month ago



Figure 14.4 represents the market for used 12 megapixel digital cameras. Suppose buyers are willing to pay $400 for a plum (high-quality) used digital camera and $200 for a lemon (low-quality) used digital camera. If buyers believe that 50% of used digital cameras in the market are lemons (low quality), how many plums will be supplied by sellers?

▸ 50

▸ 60

▸ 150

▸ 200
Answer verified by a subject expert
wrote...
Posts: 230
Rep: 9 0
A month ago
Sign in or Sign up in seconds to unlock everything.
50
1
wrote...
A month ago
Thanks
Answer accepted by topic starter
wrote...
A month ago



Figure 14.4 represents the market for used 12 megapixel digital cameras. Suppose buyers are willing to pay $400 for a plum (high-quality) used digital camera and $200 for a lemon (low-quality) used digital camera. If buyers believe that 50% of used digital cameras in the market are lemons (low quality), what percent of used digital cameras sold will actually be lemons? (low-quality)?

▸ 25%

▸ 50%

▸ 75%

▸ 100%
Answer verified by a subject expert
wrote...
Posts: 224
A month ago
Sign in or Sign up in seconds to unlock everything.
75%
1
wrote...
A month ago



Figure 14.4 represents the market for used 12 megapixel digital cameras. Suppose buyers are willing to pay $400 for a plum (high-quality) used digital camera and $200 for a lemon (low-quality) used digital camera. Initially buyers believe that 50% of used digital cameras in the market are lemons (low quality). Compared to the outcome with neutral expectations, how many fewer digital cameras are sold in equilibrium?

▸ 90

▸ 110

▸ 140

▸ The number of cameras sold in equilibrium is the same as the outcome with neutral expectations.
wrote...
A month ago
140
wrote...
A month ago
Thank you
wrote...
A month ago
Welcome ツ
Answer accepted by topic starter
wrote...
A month ago



Figure 14.4 represents the market for used 12 megapixel digital cameras. Suppose buyers are willing to pay $400 for a plum (high-quality) used digital camera and $200 for a lemon (low-quality) used digital camera. At any price between $X and $Z:

▸ only plums will be supplied.

▸ only lemons will be supplied.

▸ both plums and lemons will be supplied

▸ neither plums nor lemons will be supplied.
Answer verified by a subject expert
wrote...
Posts: 209
A month ago
Sign in or Sign up in seconds to unlock everything.
only lemons will be supplied.
1
New Topic      
Explore
Post your homework questions and get free online help from our incredible volunteers.
Learn More
Improve Grades
Help Others
Save Time
Accessible 24/7
  123 People Browsing
Your Opinion
Where do you get your textbooks?
Votes: 98

Related Images
 855
 131
 109