You Are in the Market for a Used 2016 Toyota

question 4

Multiple Choice

You are in the market for a used 2016 Toyota Corolla. You know that half of the 2016 Corollas are lemons and half are peaches. If you could be assured that the Corolla you were buying was a peach, you would be willing to pay up to $12,000. On the other hand, you would only be willing to pay $4,000 for a lemon. You have no ability to discern whether any particular Corolla is a lemon or a peach. Sellers of Corollas, on the other hand, are likely to know whether their particular car is a lemon or a peach. Suppose sellers of lemons will sell their cars for $3,000 or more and peach sellers will be willing to sell their cars for $9,000 or more. Over time the price in the market for 2016 Corollas will

• A) be between $9,000 and $12,000 for peaches and between $3,000 and $4,000 for lemons and both lemons and peaches will be traded.
• B) be between $9,000 and $12,000 and only peaches will be traded.
• C) be between $3,000 and $4,000 for lemons and only lemons will be traded.
• D) be between $3,000 and $12,000 and both lemons and peaches will be traded.

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Definitions:

Microbial Infection

Invasion and multiplication of microorganisms in body tissues, causing disease or symptoms.

Microglia

Small neuroglial cells that become phagocytic and mobile in response to inflammation; considered to be macrophages within the central nervous system.

Proliferate

To increase rapidly in numbers; commonly used in biological contexts to describe cell multiplication.

Myelination

The process of wrapping axons with myelin, a fatty substance that speeds up the transmission of electrical signals in the nervous system.