Suppose there are 100 potential buyers of used snoaboards and 100 potential sellers. Buyers value a high quality used snowboard at $400 and a low quality used snowboard at S320. There are 3 types of sellers: 00 of them are selling a low quality snowboard and are willing to sell at any price above $200. 20 of them are seling a high quality snowboard and are willing to sel at any price above $300. and 20 of them are seling a high quality snowboard and are willing to sel at any price above $400. Buyers cannot differentiate between sellers of high quality snowboards and sellers of low quality snowboards. At what price wil this market for used snowboards stabilize? (e the buyers expected proportion of snowboards that are low quality is equal to the actual proportion of sold snowboards that are low quality.) (Note: Don't add the dollar sign when inputting your answer.) What percentage of used snowboards actually sold will be low quality? (Note: Don't add the percentage sign when inputting your answer.)

Suppose there are 100 potential buyers of used snoaboards and 100 potential sellers. Buyers value a high quality used snowboard at $400 and a low quality used snowboard at S320. There are 3 types of sellers: 00 of them are selling a low quality snowboard and are willing to sell at any price above $200. 20 of them are seling a high quality snowboard and are willing to sel at any price above $300. and 20 of them are seling a high quality snowboard and are willing to sel at any price above $400. Buyers cannot differentiate between sellers of high quality snowboards and sellers of low quality snowboards. At what price wil this market for used snowboards stabilize? (e the buyers expected proportion of snowboards that are low quality is equal to the actual proportion of sold snowboards that are low quality.) (Note: Don't add the dollar sign when inputting your answer.) What percentage of used snowboards actually sold will be low quality? (Note: Don't add the percentage sign when inputting your answer.)

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter16: Information, Risk, And Insurance

Section: Chapter Questions

Problem 20CTQ: A website offers a place for people to buy and sell emeralds, but information about emeralds can be...

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