Final answer:
Imperfect information between a buyer and seller can make it difficult for them to agree on a price, leading to uncertainty and differing perceptions of value.
Step-by-step explanation:
When there is imperfect information between a buyer and seller, it can be difficult for them to agree on a price. Imperfect information means that one or both parties do not have complete or accurate information about the product being sold. This lack of information creates uncertainty and can lead to disagreements on the value of the item.
For example, if a seller has incomplete information about the true condition or market value of a used car they are selling, they may set a higher price than the buyer believes is fair. Conversely, if a buyer has imperfect information about the quality or scarcity of a product, they may be unwilling to pay a higher price, even if the seller believes it is justified.
In summary, imperfect information can make it difficult for a buyer and seller to agree on a price because it introduces uncertainty and differing perceptions of value.