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?
  1. Imperfect information
  2. Market failure
  3. Bilateral monopoly
  4. In-truth advertising
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.
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