Let q be the fraction of cars that are "peaches" and (1-q) be the fraction of cars that are "lemons." The most that a buyer will pay for a lemon is $1,500 and the most a buyer will pay for a peach is $2,500. The lowest price the owner of a peach will accept is $2,000 and the lowest price that the owner of a lemon will accept is $1,000. What is the highest percentage of cars for sale that can be lemons if any peaches are going to be offered for sale? Write your answer as an integer, without the % sign. For example, if the
Let q be the fraction of cars that are "peaches" and (1-q) be the fraction of cars that are "lemons." The most that a buyer will pay for a lemon is $1,500 and the most a buyer will pay for a peach is $2,500. The lowest price the owner of a peach will accept is $2,000 and the lowest price that the owner of a lemon will accept is $1,000. What is the highest percentage of cars for sale that can be lemons if any peaches are going to be offered for sale? Write your answer as an integer, without the % sign. For example, if the
Chapter4: Utility Maximization And Choice
Section: Chapter Questions
Problem 4.2P
Related questions
Question
Let q be the fraction of cars that are "peaches" and (1-q) be the fraction of cars that are "lemons." The most that a buyer will pay for a lemon is $1,500 and the most a buyer
will pay for a peach is $2,500. The lowest price the owner of a peach will accept is $2,000 and the lowest price that the owner of a lemon will accept is $1,000. What is the
highest percentage of cars for sale that can be lemons if any peaches are going to be offered for sale? Write your answer as an integer, without the % sign. For example, if the
answer is 10%, write "10".
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 1 images
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.Recommended textbooks for you
Microeconomics: Principles & Policy
Economics
ISBN:
9781337794992
Author:
William J. Baumol, Alan S. Blinder, John L. Solow
Publisher:
Cengage Learning
Microeconomics: Principles & Policy
Economics
ISBN:
9781337794992
Author:
William J. Baumol, Alan S. Blinder, John L. Solow
Publisher:
Cengage Learning
Economics (MindTap Course List)
Economics
ISBN:
9781337617383
Author:
Roger A. Arnold
Publisher:
Cengage Learning
Exploring Economics
Economics
ISBN:
9781544336329
Author:
Robert L. Sexton
Publisher:
SAGE Publications, Inc