If you sell your DVD player on eBay,you will be better informed about the quality of the product than any potential buyer.This is called
A) adverse selection.
B) asymmetric information.
C) moral hazard.
D) opportunistic behavior.

Question

Quizplus · Accepted Answer

Asymmetric information refers to a situation where one party in a transaction has more information than the other party. In this case, the seller has better information about the quality of the DVD player than any potential buyer. This creates a potential problem of adverse selection, where buyers may not be willing to pay a fair price for the product due to uncertainty about its quality.

If You Sell Your DVD Player on EBay,you Will Be