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Consider the market for emerald jewelery. The following graph depicts an equilibrium where both buyers and sellers have complete information. Let's assume, however, that sellers
Consider the market for emerald jewelery. The following graph depicts an equilibrium where both buyers and sellers have complete information. Let's assume, however, that sellers have additional information on the quality of the emerald. The seller knows if the emerald has been treated with oil. The use of this oil would decrease the value of emeralds. If consumers are not allowed access to this information, this market would face an issue of asymmetric information. How would this asymmetric information affect the complete information graph? Move the demand or supply curve to show the change. Supply Price Demand Quantity
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