Figure 9.5 represents the market for used cars. Suppose buyers are willing to pay $5,000 for a plum (high-quality) used car and $3,000 for a lemon (low-quality) used car. If buyers believe that 80% of used cars in the market are lemons (low quality), what percent of used cars sold will actually be plums?
A. 20%
B. 25%
C. 33.33%
D. 75%
Answer: A
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a. True b. False Indicate whether the statement is true or false
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