In a market,
A)buyers and sellers must know how the other group thinks to succeed in maximizing their own group's self-interest.
B)information is unnecessary.
C)trade must take place at a single location or economic coordination breaks down.
D)each individual participant knows only a small fraction of the total information produced in the market.
E)income equality results.

Question

Quizplus · Accepted Answer

The market consists of numerous buyers and sellers, each of whom has access to only limited information about the prices, quantities, and qualities of goods and services available in the market. No one can know everything about what's happening in the market. To maximize their profits, investors must learn to sift through the available information in a way that captures the most important signals, while ignoring the noise.

In a Market