Final answer:
Imperfect competitors can alter product price by manipulating quantity, quality, and the information shared about the product, which affects how consumers perceive quality and determine their willingness to pay.
Step-by-step explanation:
Imperfect competitors can influence product price by changing the quantity or quality of a product and the information provided about it. In markets with imperfect information, such as those for used cars, buyers may infer a product's quality from its price, which can prevent markets from reaching equilibrium price and quantity. Sellers might cut prices to increase sales, but buyers may then assume the products are of low quality.
Conversely, if sellers raise prices, buyers might infer the products are of a higher quality, potentially leading to increased sales. Overall, the (im)balance of provided information and perceived quality can significantly affect consumer behavior and market dynamics.