Principles of Economics 2e
Principles of Economics 2e
2nd Edition
ISBN: 9781947172364
Author: Steven A. Greenlaw; David Shapiro
Publisher: OpenStax
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Chapter 16, Problem 4RQ

Why might it be difficult for a buyer and seller to agree on a price when imperfect information exists?

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It is often costly to obtain the information necessary to make good decisions. Yet, your own interests can best be served by rationally weighing all options available to you. This requires informed decision making. Does this mean that making uninformed decisions is irrational? How do you determine how much information is the right amount?
Why is imperfect information a problem in market economies?  Give a current example of how imperfect information causes a disruption in a market.
In circumstances of imperfect information should one expect the market to be efficient? Explain briefly.
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