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 lemons will be supplied by sellers?
A. 50
B. 60
C. 150
D. 200
Answer: C
Economics
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What will be an ideal response?
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Answer the following statement true (T) or false (F)
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Index funds are a portfolio of:
A. bonds with rates of return fixed at 2 percentage points above the rate of inflation. B. mutual funds that track different indexes. C. stocks or bonds that exactly match a particular index. D. stocks guaranteed rates of return in excess of growth in the GDP price index.
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A move from I to J best represents a
A. change in quantity demanded.
B. change in demand.
C. increase in demand.
D. decrease in demand.
Economics