Suppose That There Are Only Two Types of Used Cars,peaches

question 79

Multiple Choice

Suppose that there are only two types of used cars,peaches and lemons.Peaches are worth $10,000,and lemons are worth $6,000.Three fourths of all used cars are peaches,and one fourth are lemons.In a market with no signals,for instance,a market without warranties,the average value of cars actually sold will be

• A) $6,000.
• B) $7,000.
• C) $7,500.
• D) $9,000.
• E) $10,000.

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Definitions:

Guttation

The exudation of small droplets of water from the pores of plants, typically occurring at the leaf margins or tips.

Modified Leaf

A leaf of a plant that has altered form or function from the standard flat, photosynthetic structure, often serving roles in reproduction, protection, or storage.

Modified Leaf

A leaf that has evolved to serve functions other than photosynthesis, such as protection or reproduction.

Bulb

A globose, fleshy, underground bud that consists of a short stem with fleshy leaves (e.g., onion).