Asymmetric information occurs
A) only in used good markets.
B) only in new good markets.
C) in the markets for new and used goods.
D) only in public good markets.

Question

Quizplus · Accepted Answer

Asymmetric information can occur in both new and used goods because the seller may have more information about the product than the buyer. In public good markets, there is no private information that one party has that the other does not, so there is no asymmetric information.

Asymmetric Information Occurs