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-The Market for Used Cars Is Shown in the Above

Question 1

Multiple Choice

-The market for used cars is shown in the above figure.Neither buyers nor sellers can 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 at $1,900. B) No cars will be sold. C) Only lemons will be sold at $1,600. D) Only lemons will be sold at $1,000.
-The market for used cars is shown in the above figure.Neither buyers nor sellers can 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 at $1,900.
B) No cars will be sold.
C) Only lemons will be sold at $1,600.
D) Only lemons will be sold at $1,000.

Correct Answer:

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