Suppose buyers in the used car market are willing to pay $6,000 for a plum (high-quality) used car and $3,000 for a lemon (low-quality) used car. If buyers believe that 75% of the used cars on the market are lemons (low quality), what would they be willing to pay for a used car?

A rational consumer should not consume more of a good when

a. total utility is decreasing b. marginal utility is diminishing c. one unit has already been consumed d. income is decreasing e. the price increases

The demand schedule for a good shows:

A. the specific quantity of the good that people are willing and able to sell at different prices. B. the positive relationship between the price and the quantity of the good. C. no relationship between the price and the quantity of the good. D. the specific quantity of the good that people are willing and able to buy at different prices.