Final answer:
The correct answer is option a. it would likely induce a reasonable person to enter into a transaction and/or the maker knows it would likely induce the other party to enter into the transaction.
Step-by-step explanation:
A misrepresentation is material if option A: it would likely induce a reasonable person to enter into a transaction and/or the maker knows it would likely induce the other party to enter into the transaction. This is because a material misrepresentation has the potential to significantly alter the decision-making of the party receiving the incorrect information, which is critical in the context of legal contracts and business dealings.
Asymmetric information, wherein one party has more information than the other, can lead to a lack of trust and therefore impede economic transactions. Sellers, to counteract the issues arising from imperfect information, may utilize methods like warranties, return policies, and certifications to reassure potential buyers about the quality of their products.