Final answer:
In economics, a market intermediary or middleman reduces transaction costs by arranging trades for buyers and sellers, helping to overcome issues of imperfect and asymmetric information. A shopper getting a good deal on a product is described as obtaining a high consumer surplus.
Step-by-step explanation:
In economics, the term for a person who reduces transaction costs by arranging trades for buyers and sellers is a market intermediary or middleman. Market intermediaries play a crucial role in reducing transaction costs that arise from imperfect information and asymmetric information, which can complicate transactions and lead to suboptimal outcomes. By facilitating exchanges between parties, intermediaries help create mechanisms that enable mutually beneficial transactions despite information challenges. For example, real estate agents, stockbrokers, and auctioneers are types of intermediaries who provide their expertise to buyers and sellers to ensure smoother transactions.
When it comes to the good deal a shopper might get on a product, an economist might describe this as consumer surplus, which is the difference between what consumers are willing to pay for a good or a service and what they actually pay. Obtaining a good deal implies that the shopper has gained a high consumer surplus, maximizing their utility or satisfaction from the transaction.