Asymmetric information describes a situation in which
A) one side of the market - buyer or seller - has more information about the good than does the other side.
B) advertising dominates whatever information consumers have about the good
C) only the seller has information about the good
D) only the buyer has information about the good
E) price is unknown until market day

Question

Quizplus · Accepted Answer

Asymmetric information occurs when one party in a transaction has more or better information than the other party. This can apply to either the buyer or the seller, not exclusively to one side.

Asymmetric Information Describes a Situation in Which