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-The Market for Used Cars Is Shown in the Above

Question 3

Multiple Choice

  -The market for used cars is shown in the above figure.Buyers cannot tell whether any given car is a lemon.Ten percent (10%) of all cars are lemons.Which of the following statements is TRUE? A)  All of the cars sell for $1,900. B)  Only lemons are sold for $1,900. C)  Only lemons are sold for $1,000. D)  Only good cars will be sold for $2,000.
-The market for used cars is shown in the above figure.Buyers cannot tell whether any given car is a lemon.Ten percent (10%) of all cars are lemons.Which of the following statements is TRUE?


A) All of the cars sell for $1,900.
B) Only lemons are sold for $1,900.
C) Only lemons are sold for $1,000.
D) Only good cars will be sold for $2,000.

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