When buyers cannot easily evaluate the quality of a good, they may:
A) assume all goods offered for sale are of high quality.
B) assume all goods offered for sale are of low quality.
C) be willing to pay a price that is too high.
D) purchase more of the good.

Question

Quizplus · Accepted Answer

When buyers cannot easily evaluate the quality of a good, they may be willing to pay a price that is too high in order to avoid the risk of purchasing a low-quality good.

When Buyers Cannot Easily Evaluate the Quality of a Good