Consider a market in which some high-quality goods are sold,but not as many as if there was perfect information about the quality of the good.This type of market is known as a(n)
A) beneficial selection.
B) thin market.
C) symmetric market.
D) efficient market.

Question

Quizplus · Accepted Answer

A market in which some high-quality goods are sold, but not as many as if there was perfect information about the quality of the good, is known as a thin market. Thin markets are characterized by low trading activity and lower liquidity due to less information being available about the goods being traded. This lack of information creates a situation where buyers may not know the true quality of the goods they are purchasing, leading to a lower demand for such goods.

Consider a Market in Which Some High-Quality Goods Are Sold,but