When markets suffer from imperfect information, it can decrease demand. (a) Why do consumers have a lower willingness to pay when they do not have enough information. (b) State one way that firms can solve this problem. (c) Explain why your answer to (b) will overcome consumer's reluctance to buy a product when they lack information.

When markets suffer from imperfect information, it can decrease demand. (a) Why do consumers have a lower willingness to pay when they do not have enough information. (b) State one way that firms can solve this problem. (c) Explain why your answer to (b) will overcome consumer's reluctance to buy a product when they lack information.

Microeconomics A Contemporary Intro

10th Edition

ISBN:9781285635101

Author:MCEACHERN

Publisher:MCEACHERN

Chapter14: Transaction Costs, Imperfect Information, And Behavioral Economics

Section: Chapter Questions

Problem 14PAE

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