Informational asymmetry in constructing a contract between a buyer and a seller can lead the seller to:
A)improve the quality of the product.
B)lower the price of the product.
C)focus on ethical codes of conduct.
D)make a perfect contract.

Question

Quizplus · Accepted Answer

Informational asymmetry can lead the seller to lower the price of the product to make it more attractive to the buyer, who may not have complete information about the product's quality or value.

Informational Asymmetry in Constructing a Contract Between a Buyer and a Seller