Figure 9.4 -Figure 9.4 Represents the Market for Used 12 Megapixel Digital

Multiple Choice

Figure 9.4
-Figure 9.4 represents the market for used 12 megapixel digital cameras. Suppose buyers are willing to pay $400 for a plum (high-quality) used digital camera and $200 for a lemon (low-quality) used digital camera. If buyers believe that 50% of used digital cameras in the market are lemons (low quality) , what percent of used digital cameras sold will actually be lemons?

A) 25%
B) 50%
C) 75%
D) 100%