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Grace wants to sell her motorcycle, and Ryan is looking for a used motorcycle to buy. Ryan takes it for a test drive. Grace knows that the clutch is going out on her motorcycle, the fuel filter is leaking, and the tires will need to be replaced soon. If she does not disclose this information to Ryan and he cannot tell from his test drive, this is an example of

Answer :

BreadRaccgo

Answer:

lack of disclosure

Explanation:

As a rider, this is idiotic as both are clear when riding and even before mounting the vehicle. it is highly illegal to sell a vehicle or piece of property without disclosing problems that you know of.

The given situation is an example of asymmetric information.

What is the meaning of Asymmetric Information?

Asymmetric information refers to the transaction in which two parties are involved and one party has more information than the other. In those transactions buyers and take the advantage of the seller.

According to the given situation there is transaction of selling of the motorcycle is involved between Grace and Ryan. The Grace does not disclose the complete information about the clutch. This type of the transaction is called as Asymmetric information.

Learn more about  Asymmetric information here:

https://brainly.com/question/8002460

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