Asymmetric information describes a situation in which:
A)both sides of the market are totally uninformed.
B)one side of the market has better information than the other side of the market.
C)the price is fixed and neither side of the market can influence it.
D)the buyer can affect the price of the product while the seller cannot.

Question

Quizplus · Accepted Answer

Asymmetric information occurs when one party in a transaction has better information than the other party. This can lead to market inefficiencies and can result in one party taking advantage of the other party's lack of information.

Asymmetric Information Describes a Situation in Which