Respuesta :
1) In the hypothetical situation, the more accurate information will result in higher demand for emeralds on this website. Customers would be able to distinguish between high-quality and low-quality emeralds as a result. The clients would have the assurance that they are purchasing a high-quality product with this kind of information.
2) There will probably be a greater availability of fine emeralds. This is so that when consumers are confident in the quality of the product, dealers may ask for a greater price for emeralds.
Step 1 of Part (a): Define incomplete information.
Imperfect information occurs when either the buyer or the seller, or both, are uncertain about the features of what they are buying and selling.
Explanation of solution in Part (a) Step 1.
Since clients can now choose the precise grade of gemstones from the vendor, there will be a rise in demand for emeralds on the website as a result of the improved information. Because the vendor will pay for the expense of the gemstone quality inspection, the buyer will also feel secure in the emeralds' quality.
The seller's website screening method will expand the emerald market.
Step 2 of Part (b): Define incomplete information.
When one or both parties are uncertain about the details of what they are buying and selling, it is said that there is incomplete information.
Step 2 of Part (b): Solution explanation.
Since customers will be able to order high-quality gemstones from the merchant thanks to the audit strategy, it is expected that demand for high-quality emeralds will rise on the website as a result of the improved information. The seller will also be able to charge a higher price based on the audit report in order to make significant profits. The purchaser will be willing to pay a higher price because they are confidence in the quality of the item they are purchasing.
The seller's online examination method is probably going to cause the market for high emeralds to soar.
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