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Give an example of how buyers and sellers keep informed

User Justin Ryan
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2 Answers

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15 votes

Final answer:

A seller can reassure buyers by offering detailed product descriptions and specifications, warranties or guarantees, customer reviews, and certifications. Maintaining excellent customer service with open communication also helps reduce the risks associated with imperfect information.

Step-by-step explanation:

To reassure a possible buyer who is faced with imperfect information, a seller of goods might employ various strategies. One important way is to provide clear and comprehensive product descriptions and detailed specifications. These include information about the quality, features, and benefits of the product or service. This transparency helps reduce the asymmetry of information and builds trust with potential buyers.

Sellers can also offer warranties or guarantees, which provide the buyer with protection against certain risks and imply a promise of quality. Another method is showcasing customer reviews, testimonials, or ratings that provide social proof and insights into the experiences of previous buyers. Certifications or third-party endorsements can also be a powerful way to signal quality and reliability to a prospective customer.

Lastly, maintaining open and honest communication by offering thorough customer service can be incredibly effective. Answering questions, providing additional information upon request, and being transparent about any potential drawbacks or limitations can help mitigate concerns arising from imperfect information.

User Tialaramex
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2.7k points
15 votes
15 votes

Answer:

A large number of buyers and sellers is necessary for perfect competition so that no one buyer or seller has the power to control the price in the market.

Step-by-step explanation:

Because there are many buyers demand is high the producers know they can sell at market price. Lack of demand will not cause them to lower prices.

User MarcoZen
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3.0k points