The process by which sellers send signals to buyers conveying information about product quality is known as:
A) asymmetric information.
B) market signaling.
C) a lemons problem.
D) moral hazard.

Question

Quizplus · Accepted Answer

Market signaling is the process by which sellers send signals to buyers conveying information about product quality, which is intended to reduce information asymmetry and increase trust between buyers and sellers. The other options (asymmetric information, a lemons problem, and moral hazard) are related concepts, but they do not accurately describe the specific process of market signaling.

The Process by Which Sellers Send Signals to Buyers Conveying