Which of the following statements is consistent with markets where it is difficult for buyers to assess the quality before purchase?
A)Sellers have incentives to sell high-quality goods at high prices.
B)Price is not a reliable indicator of quality.
C)Sellers need to be skeptical of buyer intent.
D)In spite of the difficulty, the market result will be efficient.

Question

Quizplus · Accepted Answer

In markets where it is difficult for buyers to assess the quality before purchase, price may not be a reliable indicator of quality. This can lead to buyers being hesitant to pay high prices for potentially low-quality goods, and sellers may struggle to accurately price their goods.

Which of the Following Statements Is Consistent with Markets Where