The Market for Used Sea Kayaks Has Both a High-Quality

question 26

Multiple Choice

The market for used sea kayaks has both a high-quality and low-quality variety. High-quality kayaks are valued at $3,000 and low-quality ones at $800. Supply of used high-quality kayaks is Q_H = 0.5P_H - 1,000, and the supply of used low-quality kayaks is Q_L = P_L - 500. Potential buyers cannot distinguish between a high-quality and a low-quality used kayak. Buyers believe that only 3 of every 10 used kayaks are of high quality. In this market, buyers are willing to pay $____ for used kayaks.

• A) 2,000
• B) 1,460
• C) 270
• D) 0

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Definitions:

Sentence

A sequence of words that is self-contained, typically featuring a subject and a verb, to deliver a statement, interrogative, exclamation, or imperative.

Variable

A factor, characteristic, or detail that can alter or shift.

Quantity

A property that can exist as a magnitude or multitude, often measurable and expressed as a number or amount.

Quality

An attribute or a property characteristics of an object, person, or something else.