Consumers value high-quality dirt bikes at $6,000 and low-quality dirt bikes at $2,500. The supply of used
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Consumers value high-quality dirt bikes at $6,000 and low-quality dirt bikes at $2,500. The supply of used high-quality dirt bikes is QH = 0.5PH – 2,000, while the supply of used low-quality dirt bikes is QL = PL – 1,000. Potential buyers cannot distinguish the difference between the two. Buyers base their willingness to pay on the belief that half the used dirt bikes are high-quality. At the buyers' willingness to pay sellers will offer _____ high-quality bikes and _____ low-quality ones.
A). 125; 3,250
B). 450; 900
C). 2,000; 2,000
D). 3,000; 1,500
Related Book For
Personal Financial Planning
ISBN: 978-1111971632
13th edition
Authors: Lawrence J. Gitman, Michael D. Joehnk, Randy Billingsley
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