The term that is used to refer to a situation in which one party to an economic transaction has less information than the other party is
A) asymmetric information. B) inefficient market hypothesis.
C) information disparity. D) moral hazard.
A
Economics
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Entry in a perfectly competitive market
A) shifts the market supply curve rightward. B) decreases the market price. C) shifts the market supply curve leftward. D) Both answers A and B are correct.
Economics
As the price of milk increases, what happens at the original equilibrium in the market for cereal that signals market participants that the original equilibrium must change? (Milk and cereal are complements.)
A) A surplus is created by an increase in supply. B) A surplus is created by a decrease in demand. C) A shortage is created by an increase in demand. D) A shortage is created by a decrease in supply.
Economics