Moral hazards usually solely impact the buyer. However, since no situations are specified, the answers A and C are both acceptable. In a transaction involving moral hazard, both parties could get hurt, suffer losses.
When one of the parties (whether it is the buyer or the seller) to a contract or agreement can take risks without worrying to face a repercussion, moral hazard may basically exist. In this case, either the buyer or the seller gets hurt in a transaction.
Actually, the phrase "moral hazard" describes a circumstance in which a buyer or a seller lacks the motivation to take precautions against a risk. Why? Simply because they are going to be shielded from any possible losses or fallout.
If you need examples of witnessed moral hazard in the workplace, read here: https://brainly.com/question/26367615
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