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Table 93
-In Table 9

Question 79

Multiple Choice

 Markets  Plums high quality)   Lemons low quality)   Supplied  % Buyers Believe are  Lemons low quality)  152570%2102060%3151540%\begin{array}{cccc}\hline \text { Markets } & \begin{array}{l}\text { Plums high quality) }\end{array} & \begin{array}{l}\text { Lemons low quality) } \\\text { Supplied }\end{array} & \begin{array}{c}\text { \% Buyers Believe are } \\\text { Lemons low quality) }\end{array} \\\hline 1 & 5 & 25 & 70 \% \\2 & 10 & 20 & 60 \% \\3 & 15 & 15 & 40 \%\\\hline \end{array} Table 9.3
-In Table 9.3, market 2 would be in equilibrium if buyers believed plums account for:


A) about 16.67% of the market.
B) about 33.33% of the market.
C) about 66.67% of the market.
D) about 88.89% of the market.

Correct Answer:

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