Figure 9.2 -Figure 9.2 Represents the Market for Used Cameras. Suppose Buyers

Multiple Choice

Figure 9.2
-Figure 9.2 represents the market for used cameras. Suppose buyers are willing to pay $125 for a plum (high-quality) used camera and $25 for a lemon (low-quality) used camera. If buyers believe that 50% of the used cameras in the market are lemons (low quality) , how much will pay for a used camera?

A) $25
B) $50
C) $75
D) $125