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Exists when there is a difference between the actual situation and the desired situation

User Jan Hommes
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Final answer:

Imperfect information in economics refers to a situation where buyers or sellers are uncertain about the qualities of what they are buying or selling, leading to a difference between the actual and desired situation.

Step-by-step explanation:

In economics, the term 'imperfect information' refers to a situation where either the buyer or the seller, or both, are uncertain about the qualities of what they are buying and selling. This can lead to a difference between the actual situation and the desired situation. For example, if a buyer purchases a product without knowing its true quality, they may later discover that it does not meet their expectations.

User Chackerian
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