Exhibit 13-4: Market for Healthy Hands Lotion
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In Exhibit 13-4, the makers of Healthy Hands Lotion discovered that the lotion can cause skin reactions, but it doesn't inform the buyers. While the market experiences imperfect information, the price and quantity will be
A. $5.00 and 50 units.
B. $4.00 and 40 units.
C. $6.00 and 40 units.
D. $8.00 and 0 units.
Answer: A
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