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-The Market for Used Cars Is Shown in the Above

Question 80

Multiple Choice

-The market for used cars is shown in the above figure.Buyers cannot tell whether any given car is a lemon.Ten percent (10%) of all cars are lemons.Which of the following statements is TRUE? A) Only lemons are sold for $1,900. B) Only lemons are sold for $1,000. C) Buyers of lemons will pay too much for their cars. D) Buyers of good cars will pay too much for their cars.
-The market for used cars is shown in the above figure.Buyers cannot tell whether any given car is a lemon.Ten percent (10%) of all cars are lemons.Which of the following statements is TRUE?


A) Only lemons are sold for $1,900.
B) Only lemons are sold for $1,000.
C) Buyers of lemons will pay too much for their cars.
D) Buyers of good cars will pay too much for their cars.

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