The market for used cars is shown in the above figure. Buyers cannot tell whether any given car is a lemon. Forty percent (40%) of all cars are lemons. Which of the following statements is true?
A) All of the cars will be sold.
B) No cars will be sold.
C) Only lemons will be sold.
D) Ten percent of the used cars sold will be lemons.
C
Economics
You might also like to view...
If the annual interest rate is 0%, the net present value of receiving $550 in the next year is
a. $550 b. $551 c. $549 d. $500
Economics
If demand is inelastic, the absolute value of the price elasticity of demand is
A) one. B) less than one. C) greater than one. D) greater than the absolute value of the slope of the demand curve.
Economics