Final answer:
It might be difficult for a buyer and seller to agree on a price due to information asymmetry, which occurs when one party has more knowledge about the product's quality or price, leading to mistrust and complicated negotiations.
Step-by-step explanation:
The difficulty in agreeing on a price when imperfect information exists is due to the concept known as information asymmetry. This condition arises when one party in the transaction, either the buyer or the seller, is more informed about the product's quality or price than the other. The party with less information is at a disadvantage, which can lead to mistrust and a breakdown in negotiations. For example, if a seller knows the car they're selling has hidden issues but the buyer is unaware, the buyer may offer more than the car's true value; conversely, if the buyer detects a possible undisclosed issue, they may offer less than what the seller expects, preventing an agreement on price.