The Supply of Used High-Quality Motorcycles Is Q_H = 0

Multiple Choice

The supply of used high-quality motorcycles is Q_H = 0.2P_H - 1,000, and the supply of used low-quality motorcycles is Q_L = 0.5P_L - 1,000. In the used-motorcycle market, potential buyers cannot tell them apart. Consumers value high-quality motorcycles at $10,000 and low-quality motorcycles at $6,000. If consumers believe there is a 50% probability that a used motorcycle is high quality, consumers are willing to pay ____ for any used motorcycle.

A) $16,000
B) $10,000
C) $8,000
D) $6,000