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 used cameras in the market are lemons (low quality) , what fraction of used cameras sold will actually be lemons (low quality) ?

A) 10/25
B) 10/35
C) 25/35
D) All of the cameras sold will be lemons.