Final answer:
A seller is likely to prefer working with an agent who uses 'price reduction' because it signifies clarity and responsiveness to market dynamics and buyer concerns, especially in a market with imperfect information.
Step-by-step explanation:
The statement suggests a preference for the term “price reduction” over “price adjustment” when an agent is presenting this option to a seller. In the context of market dynamics and imperfect information, a price reduction might imply a straightforward decrease in price to attract buyers, whereas a price adjustment could be interpreted as more ambiguous or suggesting a different change in pricing strategy without a clear benefit.
When sellers disclose problems, the selling price typically lowers because buyers factor in these issues when determining the value. If a seller works with an agent who clearly communicates price reductions, it can indicate to buyers that the seller is responsive to market demands and transparent about the item’s value.