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Tags
#cfa #cfa-level-1 #economics #microeconomics #reading-13-demand-and-supply-analysis-introduction #study-session-4
Question
So anything that improves dissemination of information about buyers’ and sellers’ willingness to exchange goods can [...].
Answer
add value

Tags
#cfa #cfa-level-1 #economics #microeconomics #reading-13-demand-and-supply-analysis-introduction #study-session-4
Question
So anything that improves dissemination of information about buyers’ and sellers’ willingness to exchange goods can [...].
Answer
?

Tags
#cfa #cfa-level-1 #economics #microeconomics #reading-13-demand-and-supply-analysis-introduction #study-session-4
Question
So anything that improves dissemination of information about buyers’ and sellers’ willingness to exchange goods can [...].
Answer
add value
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d><head>In effect, any impediment in the dissemination of information about buyers’ and sellers’ willingness to exchange goods can cause an imbalance in demand and supply. So anything that improves that information flow can add value. In that sense, advertising can add value to the extent that it informs potential buyers of the availability of goods and services.<html>

Original toplevel document

3.13. Market Interference: The Negative Impact on Total Surplus
provide value in the transaction, and for that value they are able to charge a brokerage fee. Although the brokerage fee could certainly be viewed as a transactions cost, it is really a price charged for the service of reducing search costs. <span>In effect, any impediment in the dissemination of information about buyers’ and sellers’ willingness to exchange goods can cause an imbalance in demand and supply. So anything that improves that information flow can add value. In that sense, advertising can add value to the extent that it informs potential buyers of the availability of goods and services. <span><body><html>

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