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. Compared to the situation when buyers have neutral expectations, if buyers believed that fewer than 50% of used refrigerators are lemons (low-quality)

A) more plums (high-quality) used refrigerators would be on the market.
B) fewer plums (high-quality) used refrigerators would be on the market.
C) fewer lemons (low-quality) used refrigerators would be on the market.
D) the same total number of used refrigerators would be on the market, but more of them would be plums (high-quality) used refrigerators.