A-level Paper 1, June 2025Markets and Business Behaviour
A-level Paper 1, June 2025, Q4(a)
With reference to the data above, explain how imperfect market information may lead to a misallocation of resources in the used-car market.
Short answerExplain4 marks
Context
Nearly 750 000 consumers in Britain face unresolved problems with used car purchases every year. Older vehicles tend to have more faults and increase the risks facing a potential buyer.