Problems associated with thin markets provide incentives for
A)buyers to seek information about identifying high-quality items.
B)sellers to prove that the items they are selling are of high quality.
C)buyers and sellers to agree upon a higher price than would hold in equilibrium.
D)Both A and B.

Question

Quizplus · Accepted Answer

In thin markets, where there are fewer buyers and sellers, there is a higher risk of information asymmetry. This incentivizes buyers to seek information to identify high-quality items and sellers to prove the quality of their items to attract buyers.

Problems Associated with Thin Markets Provide Incentives for