If a seller of a high-quality good cannot prove the quality of that good
A) buyers will not be willing to pay the amount for which they value a high-quality good.
B) buyers will only be willing to pay the amount for which they value a low-quality good.
C) the good will never be offered for sale.
D) the good will trade at its equilibrium price.

Question

Quizplus · Accepted Answer

The quality of a good is a key factor in determining its value to buyers. If a seller cannot prove the quality of their good, buyers may not be willing to pay the higher price typically associated with high-quality goods. As a result, the seller may have to lower the price to attract buyers, which could lead to the good being undervalued and potentially not profitable for the seller.

If a Seller of a High-Quality Good Cannot Prove the Quality