Imagine a market for used computers. There are two types of computers: good and bad. Also imagine that there are 50% of each on the market. Buyers can imagine paying 5,000 for a good computer and 1,000 for a bad computer Sellers want at least 4000 for a good computer and 1500 for a bad computer -What would happen over time in the market when buyers can observe the quality of computers through transactions?
Imagine a market for used computers. There are two types of computers: good and bad. Also imagine that there are 50% of each on the market. Buyers can imagine paying 5,000 for a good computer and 1,000 for a bad computer Sellers want at least 4000 for a good computer and 1500 for a bad computer -What would happen over time in the market when buyers can observe the quality of computers through transactions?
Economics Today and Tomorrow, Student Edition
1st Edition
ISBN:9780078747663
Author:McGraw-Hill
Publisher:McGraw-Hill
Chapter11: Marketing And Distribution
Section: Chapter Questions
Problem 22AA
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Imagine a market for used computers. There are two types of computers: good and bad. Also imagine that there are 50% of each on the market.
Buyers can imagine paying 5,000 for a good computer and 1,000 for a bad computer
Sellers want at least 4000 for a good computer and 1500 for a bad computer
-What would happen over time in the market when buyers can observe the quality of computers through transactions?
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