Figure 9.2 -Figure 9.2 Represents the Market for Used Cameras. Suppose Buyers

question 173

Multiple Choice

Figure 9.2
-Figure 9.2 represents the market for used cameras. Suppose buyers are willing to pay $125 for a plum (high-quality) used camera and $25 for a lemon (low-quality) used camera. If buyers believe that 50% of used cameras in the market are lemons (low quality) , what fraction of used cameras sold will actually be lemons (low quality) ?

• A) 10/25
• B) 10/35
• C) 25/35
• D) All of the cameras sold will be lemons.

---

Definitions:

Odourless

Lacking a detectable smell, characteristic of certain substances or conditions where no odor is perceptible.

Corrosive

Materials or substances that have the ability to destroy or damage other materials through a chemical reaction.

Ozone Layer

A stratospheric layer containing a high concentration of ozone, which protects the Earth from the sun's harmful ultraviolet radiation.

Methyl Bromide

A toxic gas used as a pesticide and for fumigation, known to deplete the ozone layer and hazardous to human health.