Question: When markets suffer from imperfect information, it can decrease demand. (a) Why do consumers have a lower willingness to pay when they do not have

When markets suffer from imperfect information, it can decrease demand.

(a) Why do consumers have a lower willingness to pay when they do not have enough information?

(b) State one way that firms can solve this problem.

(c) Explain why your answer to (b) will overcome consumer's reluctance to buy a product when they lack information.

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