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

A) 50/250
B) 50/300
C) 250/300
D) All of the refrigerators sold will be lemons.