Goods X and Y Both Have an Average Quality Index

question 15

Multiple Choice

Goods X and Y both have an average quality index of 50.For good X,the lowest quality is 45 and highest quality is 55.For good Z,the lowest quality is 25 and the highest quality is 75.One would predict that the lemons model will

• A) operate only for good Z.
• B) operate only for good X.
• C) apply equally to both markets.
• D) apply more to good X than to good Z.
• E) apply more to good Z than to good X.

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Definitions:

Methane

A colorless, odorless flammable gas that is the simplest alkane, used as a fuel and in chemical synthesis.

Photosynthesis

The process by which green plants and some other organisms use sunlight to synthesize foods from carbon dioxide and water. Photosynthesis in plants generally involves the green pigment chlorophyll and generates oxygen as a byproduct.

Chloroplasts

Organelles found in plant and algal cells responsible for photosynthesis, the process by which light energy is converted to chemical energy in the form of glucose.

Photosynthesis

A biochemical process in plants, algae, and some bacteria that converts sunlight, water, and carbon dioxide into glucose and oxygen, utilizing chlorophyll.