Figure 9.2 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?

Which of the following will not shift the demand curve for movie tickets?

a. a change in the cost of babysitting services b. a change in the price of movie tickets c. a change in the quality of television programs d. a change in the income of movie-goers e. a change in the number of consumers

A nation's official reserves:

A. compensate for differences in the current and capital and financial accounts. B. consist of all domestic and foreign currency held by a nation's central bank. C. are always zero. D. are always negative.