Figure 9.3 -Figure 9.3 Represents the Market for Used Refrigerators. Suppose Buyers

Multiple Choice

Figure 9.3
-Figure 9.3 represents the market for used refrigerators. Suppose buyers are willing to pay $300 for a plum (high-quality) used refrigerator and $100 for a lemon (low-quality) used refrigerator. If buyers believe that 50% of the used refrigerators in the market are lemons (low quality) , how much will they be willing to pay for a used refrigerator?

A) $100
B) $200
C) $250
D) $300