Final answer:
Imperfect information can make it difficult for a buyer and seller to agree on a price, especially when one buyer has more knowledge than the other.
Step-by-step explanation:
When there is imperfect information, it can be difficult for a buyer and seller to agree on a price. Imperfect information means that the buyer and seller do not have the same knowledge about the product or service being sold. For example, if the first buyer of a double sale knows more about the product than the second buyer, it can create an imbalance of information that may lead to disagreements on the price.
This can happen because the first buyer may have insider knowledge or access to information that gives them a better understanding of the true value or quality of the product. On the other hand, the second buyer may have limited information and may be at a disadvantage when negotiating the price.
Overall, when there is imperfect information, it can create asymmetry between the buyer and seller, making it difficult for them to reach an agreement on the price due to their different levels of knowledge.