Better information about consumers' reservation prices generally leads to:

Question

Quizplus · Accepted Answer

When consumers' reservation prices are known, it allows sellers to tailor their prices to maximize profits by selling to the consumers who are willing to pay the highest price. This may lead to a reduction in consumer surplus, but it also ensures that goods are acquired by those who value them the most and are willing to pay for them. It does not necessarily lead to equitable distribution or acquisition by those with the greatest need.

Better Information About Consumers' Reservation Prices Generally Leads To