Question

The presence of _____________________ in transactions involving goods can easily cause a ______________________ if the result is only a relatively small number of buyer and sellers communicating enough information so that they can agree on a price.

Answer 1

Answer:

Imperfect information, decline

Explanation:

Several economic transactions occur in a situation of imperfect information, in which either the buyer, the seller, or both, are less than 100% certain about the qualities of what is being bought and sold. The transaction can also be characterized by asymmetric information, in which one party has more information than the other party in regards to the economic transaction.