If buyers and/or sellers do not have all of the available information about a product’s prices, customers, suppliers, inputs, available markets, etc., what is this called?
Explanation
Answer - A - If buyers and/or sellers do not have all of the available information about a product’s prices, customers, suppliers, inputs, available markets, etc., this is called imperfect information.
Key Takeaway: Imperfect information is one of the main things that can lead to market failure. Because a buyer or seller does not have all of the information about a given product, it could lead to buyers paying too much for a product, producers producing too much of one given product, or customers making poor decisions about poor-quality products.
