In markets with incomplete information, middlemen tend to ________ total economic surplus by ________.
A)reduce; raising prices
B)reduce; giving misleading information
C)increase; raising prices
D)increase; matching sellers with buyers who have high reservation prices

Question

Quizplus · Accepted Answer

Total economic surplus is increased by middlemen being able to match sellers with buyers who have high reservation prices.

In Markets with Incomplete Information, Middlemen Tend to ________ Total