Final answer:
A person not receiving or perceiving to not receive the promised quality of goods or services deals with imperfect information in economic transactions. This leads to reluctance on part of both buyers and sellers to participate in the market, negatively affecting the distribution of goods and services in a market economy.
Step-by-step explanation:
Someone who either does not or perceives that he or she does not receive promised or quality products or services is experiencing the effects of imperfect information in the market.
This situation arises when either the buyer or the seller, or both, are uncertain about the qualities of what they are buying and selling. Due to imperfect information, buyers may be discouraged from participating in the market because they cannot ascertain the product's quality.
Conversely, sellers of higher quality goods may find it difficult to participate and receive a fair price, as they cannot easily demonstrate the quality of their goods to potential buyers.
The presence of imperfect information can pose significant challenges in economic transactions, affecting confidence between parties and potentially leading to a market downfall if not managed properly.
It is a crucial factor that influences how goods and services are distributed among consumers in a market economy and sets the groundwork for many economic theories and practices related to consumer behavior, market dynamics, and regulatory interventions.