Figure 9.1 -Figure 9.1 Represents the Market for Used Bikes. Suppose Buyers

Multiple Choice

Figure 9.1
-Figure 9.1 represents the market for used bikes. Suppose buyers are willing to pay $200 for a plum (high-quality) used bike and $50 for a lemon (low-quality) used bike. If buyers believe that 50% of used bikes in the market are lemons (low quality) , what fraction of used bikes sold will actually be lemons (low quality) ?

A) 8/30
B) 22/30
C) 8/22
D) 30/30