A market characterized by imperfect information will have an equilibrium price if at that price

Question

Quizplus · Accepted Answer

In a market with imperfect information, there may be differences in the information available to buyers and sellers, leading to different levels of understanding about the product or market conditions. Therefore, the equilibrium price will be determined based on the prevailing information levels, where the quantity demanded and quantity supplied are equal. This is because the price that balances demand and supply depends on the information each party has, and the equilibrium price will adjust to reflect the level of information available to market participants.

A Market Characterized by Imperfect Information Will Have an Equilibrium