If Eight Lemons (Low Quality) and Two Plums (High Quality)

question 64

True/False

If eight lemons (low quality) and two plums (high quality) are supplied and buyers assume that there is a 40% chance of getting a lemon, there is an equilibrium.

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Definitions:

Direct Owner

Refers to the person or entity that has legal possession and full control over a property or asset.

License

A grant of permission to do a particular thing, to exercise a certain privilege, to carry on a particular business, or to pursue a certain occupation; an agreement that gives no property right or interest in land but merely allows the licensee to do certain acts that would otherwise be a trespass; a privilege granted by a state or city.

Possessory Estate

An interest in real property that grants the holder the right to possess or occupy the land for a certain period.

Personal Privilege

A special right, advantage, or immunity granted or available only to a particular person or group.