If a website facilitates the sale of goods by individuals and businesses over the internet, but requires actual photos of every item for sale to be posted instead of a manufacturer's stock picture of the product, both the demand and supply of products in good condition will shift due to the improved information, causing quantity to _________ and price to _______________.

Question

Quizplus · Accepted Answer

The requirement for actual photos improves information about the condition of goods, likely increasing trust and reducing uncertainty for buyers, which can increase demand. For sellers, this transparency may encourage the listing of only those items that are in good condition, potentially affecting supply positively as well. Thus, the quantity of transactions is likely to increase. However, the effect on price is indeterminate without more information about the relative shifts in supply and demand.

If a Website Facilitates the Sale of Goods by Individuals