Figure 9.4 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 (high quality) will be supplied by sellers?
A. 50
B. 60
C. 150
D. 200
Answer: A
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What is a laissez-faire economy?
What will be an ideal response?
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Which of these is a flow variable?
What will be an ideal response?
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Answer the following statement true (T) or false (F)