Consumers Value High-Quality Dirt Bikes at $6,000 and Low-Quality Dirt

question 63

Multiple Choice

Consumers value high-quality dirt bikes at $6,000 and low-quality dirt bikes at $2,500. The supply of used high-quality dirt bikes is Q_H = 0.5P_H - 2,000, while the supply of used low-quality dirt bikes is Q_L = P_L - 1,000. Potential buyers cannot distinguish the difference between the two. Buyers base their willingness to pay on the belief that half the used dirt bikes are high-quality. At the buyers' willingness to pay sellers will offer _____ high-quality bikes and _____ low-quality ones.

• A) 125; 3,250
• B) 2,000; 2,000
• C) 450; 900
• D) 3,000; 1,500

---

Definitions:

Synaptic Vesicles

Small sacs in the neuron that store neurotransmitters, which are released into the synaptic cleft to transmit nerve impulses to other neurons.

Axon Terminals

The distal terminations of the branches of an axon, making connections with other nerve cells or muscles and transferring the impulse.

Dendrites

Branch-like extensions of neurons that receive electrochemical signals from other neurons.

Corpus Callosum

A large band of neural fibers that connects the left and right hemispheres of the brain, facilitating communication and coordination between them.