Use the Following to Answer Questions

Multiple Choice

Use the following to answer questions :
Scenario: Used-Car Market
In the used-car market,cars of poor quality are called lemons,whereas cars of good quality are called plums.Suppose that the probability of obtaining a lemon is 60% and the probability of obtaining a plum is 40%.Also,assume that a plum is worth $15 000 and a lemon is worth $3 000.
-(Scenario: Used-Car Market) Use Scenario: Used-Car Market.If buyers cannot distinguish between lemons and plums,eventually this used-car market will:

A) be made up mostly of lemons.
B) have buyers who will have a 50% chance of choosing a plum.
C) be made up mostly of plums.
D) be made up of 50% plums and 50% lemons.