The presence of _____________________ in transactions involving goods can easily cause a ______________________ if the result is only a relatively small number of buyer and sellers communicating enough information so that they can agree on a price.
A) imperfect information; thin market
B) adverse information; decline in prices or quantities of products sold
C) adverse selection; decline in prices or quality of purchased goods
D) imperfect selection; thick market

Question

Quizplus · Accepted Answer

Imperfect information in transactions can lead to a thin market, where there are few buyers and sellers, making it difficult to agree on a price due to the lack of sufficient information being communicated.

The Presence of _____________________ in Transactions Involving Goods Can Easily