________ is a market imperfection that results when sellers have incomplete information about customers.

Question

Quizplus · Accepted Answer

Adverse selection occurs when sellers have incomplete knowledge about the quality of the product or the characteristics of the buyer. This can lead to sellers offering worse quality products at higher prices or being unwilling to offer certain products at all. The result can be a reduction in competition and overall welfare in the market.

________ Is a Market Imperfection That Results When Sellers Have