With imperfect information, prices
A) are irrelevant in the marketplace.
B) are always above equilibrium.
C) may no longer reflect individual preferences.
D) are the only mechanism to judge efficiency.

Question

Quizplus · Accepted Answer

With imperfect information, prices may not accurately reflect individual preferences because consumers might not have all the necessary information to make fully informed decisions, leading to a misalignment between prices and what consumers value.

With Imperfect Information, Prices