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

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter13: General Equilibrium And Welfare

Section: Chapter Questions

Problem 13.5P

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