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

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
icon
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
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps with 1 images

Blurred answer
Knowledge Booster
Asymmetric Information
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.
Similar questions
Recommended textbooks for you
ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
Economics
ISBN:
9780190931919
Author:
NEWNAN
Publisher:
Oxford University Press
Principles of Economics (12th Edition)
Principles of Economics (12th Edition)
Economics
ISBN:
9780134078779
Author:
Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:
PEARSON
Engineering Economy (17th Edition)
Engineering Economy (17th Edition)
Economics
ISBN:
9780134870069
Author:
William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:
PEARSON
Principles of Economics (MindTap Course List)
Principles of Economics (MindTap Course List)
Economics
ISBN:
9781305585126
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
Managerial Economics: A Problem Solving Approach
Managerial Economics: A Problem Solving Approach
Economics
ISBN:
9781337106665
Author:
Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:
Cengage Learning
Managerial Economics & Business Strategy (Mcgraw-…
Managerial Economics & Business Strategy (Mcgraw-…
Economics
ISBN:
9781259290619
Author:
Michael Baye, Jeff Prince
Publisher:
McGraw-Hill Education