Table 9.4
-In Table 9.4, Market 1 would be in equilibrium if buyers believed lemons accounted for
A) about 90.91% of the market.
B) about 74.5% of the market.
C) about 63.25% of the market.
D) about 57.65% of the market.

Question

Table 9.4
-In Table 9.4, Market 1 would be in equilibrium if buyers believed lemons accounted for
A) about 90.91% of the market. 
B) about 74.5% of the market. 
C) about 63.25% of the market. 
D) about 57.65% of the market.

Quizplus · Accepted Answer

Market equilibrium occurs when the perceived percentage of lemons matches the actual percentage, which is 90.91% in this scenario.

Table 9.4 -In Table 9.4, Market 1 Would Be in Equilibrium If