Figure 14.4 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
You might also like to view...
________ the owners of the factors of production, while ________ what amounts of those factors to hire
A) Households are; firms determine B) Households are; the government determines C) The government is; firms determine D) Firms are; households determine E) Firms are; the government determines
A price ceiling set below the equilibrium price is nonbinding
a. True b. False Indicate whether the statement is true or false
Elasticity of supply becomes ________ elastic over time because ________
a. less; of the growing scarcity of resources b. less; suppliers have more time to acquire additional resources to achieve desired capacity c. more; demand becomes more inelastic d. more; demand will always continue to increase e. more; suppliers have more time to acquire additional resources to achieve desired capacity
If there is a surplus in the market for loanable funds, then the interest rate
a. rises, so national saving rises. b. rises, so national saving falls. c. falls, so national saving rises. d. falls, so national saving falls.