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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 will be sold. B) No cars will be sold. C) Only lemons will be sold. D) Only good cars will be sold.
-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 will be sold.
B) No cars will be sold.
C) Only lemons will be sold.
D) Only good cars will be sold.

Correct Answer:

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