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. At any price between $X and $Z:
A. only plums will be supplied.
B. only lemons will be supplied.
C. both plums and lemons will be supplied
D. neither plums nor lemons will be supplied.
Answer: B
You might also like to view...
The long run is distinguished from the short run because only in the long run
A) output prices can vary. B) factor of production prices can vary. C) the quantities of all factors of production can be varied. D) the firm no longer maximizes its profit.
Assume that the government is considering different policies to increase total expenditures in order to reduce unemployment. Which of the following would achieve this objective?
a. decreasing taxes b. increasing government spending c. increasing transfer payments d. All of the above are correct.
In the absence of trade barriers, patterns of trade are driven by comparative advantage.
a. true b. false
Suppose that the opportunity cost of a student's time is greater when he studies than when he works. What mistake is he making and why?
What will be an ideal response?