Final answer:
4) both answers shown
The licensee's and the seller's answers to questions about property condition must be complete and truthful. Imperfect information can be managed by providing accurate data, warranties, and allowing inspections. Pricing agreement challenges arise from uncertainty in product condition or value.
Step-by-step explanation:
When a buyer asks a question about a specific property condition, the licensee's and the seller's answers must be both complete and truthful.
Honest disclosure is critical in the selling process to build trust and comply with legal obligations. In situations with imperfect information, a seller can reassure a potential buyer by providing as much accurate information as possible, offering warranties or guarantees, and allowing for inspections or audits.
Imperfect information can make it difficult for buyers and sellers to agree on a price because there is uncertainty regarding the true condition or value of the product or service. This could lead to a buyer undervaluing a product for fear of potential hidden defects, or a seller overvaluing it based on their perceived value.