Where There Is Asymmetric Information Between Buyers and Sellers

question 33

Multiple Choice

Where there is asymmetric information between buyers and sellers,

• A) product shortages will occur at the equilibrium price.
• B) product surpluses will occur at the equilibrium price.
• C) markets can produce inefficient outcomes.
• D) markets will fail due to the "free-rider problem."

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Definitions:

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