In a market where consumers have perfect information about the products available, how does this affect the market equilibrium compared to a situation with information asymmetry?

When consumers have perfect information about the products available, they can make informed choices based on price and quality. This leads to a more efficient market because everyone knows what they are buying and can compare options easily. In contrast, if there is information asymmetry, where some consumers lack important details about the products, they might make poor choices or pay higher prices. For example, if a consumer doesn’t know that one brand of smartphones has better features for a lower price, they might buy a more expensive phone that doesn’t meet their needs. Overall, perfect information helps the market reach a better equilibrium where prices reflect true value, benefiting both consumers and producers.