In a market with asymmetric information, ________
A) buyers tend to forget relevant information about the good being traded
B) buyers set the price of the good being traded
C) buyers and sellers have different information about the good being traded
D) buyers have very low bargaining power
C
You might also like to view...
The demand curve for the output of an individual firm in monopolistic competition is
a. more elastic than the market demand curve. b. less elastic than the market demand curve. c. equivalent to the market demand curve. d. perfectly elastic.
The economy's long-run aggregate supply curve
a. never shifts b. indicates that in the long run, the price level is constant c. is shifted by demand shocks d. is a vertical line at the full-employment level of output e. is perfectly elastic
When a party to a transaction lacks relevant information:
A. they always make the deal blindly. B. they will not make the deal without complete information. C. they sometimes seek out information in ways that are not obvious. D. other parties will voluntarily share this information truthfully.
The demand for microwaves in a certain country is given by: D = 8,000 - 30P, where P is the price of a microwave. Supply by domestic microwave producers is: S = 4,000 + 10P. If this economy opens to trade while the world price of a microwave is $50, and the government imposes a tariff of $30 per microwave, then the domestic quantity demanded will be ________ microwaves.
A. 5,600 B. 5,000 C. 4,500 D. 4,000