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

question 32

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; the supply of used low-quality dirt bikes is Q_L = P_L - 1,000. Potential buyers cannot distinguish between the two. If buyers believe that half the used dirt bikes are high quality, what price are buyers willing to pay for a used dirt bike?

• A) $3,500
• B) $1,250
• C) $3,000
• D) $4,250

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Definitions:

Pressure Ulcer

An injury to the skin and underlying tissue, usually over a bony prominence, as a result of prolonged pressure or pressure in combination with shear.

Purulent Drainage

A thick, yellow, green, or brown discharge from a wound, indicating infection.

Elevated Temperature

A body temperature that is higher than the normal range, often indicative of infection, inflammation, or other medical conditions.

Ambulatory Care

Medical care provided on an outpatient basis, including diagnosis, observation, consultation, treatment, intervention, and rehabilitation services.