In Rustbucket, Michigan, There Are 200 Used Cars for Sale

question 20

Multiple Choice

In Rustbucket, Michigan, there are 200 used cars for sale, half of them are good and half of them are lemons.Owners of lemons are willing to sell them for $200.Owners of good used cars are willing to sell them for prices above $1,100 but will keep them if the price is lower than $1,100.There is a large number of potential buyers who are willing to pay $500 for a lemon and $1,500 for a good car.Buyers can't tell good cars from bad, but original owners know.

• A)There will be an equilibrium in which all used cars sell for $650.
• B)There will be an equilibrium in which lemons sell for $200 and good used cars sell for $1,100.
• C)There will be an equilibrium in which all used cars sell for $1,000.
• D)The only equilibrium is one in which all used cars on the market are lemons and they sell for $500.
• E)There will be an equilibrium in which lemons sell for $500 and good used cars sell for $1,500.

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Definitions:

Audience Segregation

The practice of separating communication styles or content tailored to specific groups within an audience to avoid conflict or confusion.

Cultural Worldview

The collective beliefs, values, and perceptions that shape how a group of people understand the world and their place in it.

Unstable Self-esteem

A condition where an individual's perception of their worth or value fluctuates significantly, often impacted by external factors or feedback.

Self-monitoring

The ability of individuals to regulate their behavior to appropriately adapt to different social situations or to achieve personal goals.