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Figure 9.1 -Figure 9.1 Represents the Market for Used Bikes. Suppose Buyers

Question 25

Multiple Choice

Figure 9.1 -Figure 9.1 represents the market for used bikes. Suppose buyers are willing to pay $200 for a plum (high-quality) used bike and $50 for a lemon (low-quality) used bike. If buyers believe that 50% of used bikes are lemons (low quality) , how many lemons (low quality) will be supplied by sellers? A) 8 B) 12 C) 16 D) 22 Figure 9.1
-Figure 9.1 represents the market for used bikes. Suppose buyers are willing to pay $200 for a plum (high-quality) used bike and $50 for a lemon (low-quality) used bike. If buyers believe that 50% of used bikes are lemons (low quality) , how many lemons (low quality) will be supplied by sellers?


A) 8
B) 12
C) 16
D) 22

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