When quality is not observable by buyers, it is difficult for buyers to purchase
A)at a low price.
B)because they have an advantage over sellers.
C)high-quality products.
D)because of their overconfidence.

Question

Quizplus · Accepted Answer

When quality is not observable, buyers have a difficult time purchasing high-quality products because they cannot distinguish between high and low-quality products. This may lead to a situation where all products on the market are perceived to be of low quality, meaning that buyers may not be willing to pay a higher price for a product that they cannot be sure is actually of higher quality. Therefore, purchasing high-quality products becomes challenging for buyers.

When Quality Is Not Observable by Buyers, It Is Difficult