If the demand curve fails to capture all of the benefits of consumption,then the:
A)equilibrium price is efficient but the quantity will be too large.
B)the equilibrium price is inefficiently low.
C)government needs to impose regulations that require more consumption.
D)the equilibrium price is inefficiently high.

Question

Quizplus · Accepted Answer

Market equilibrium is not efficient when all costs and benefits are not accounted for.In this case,the benefits of consumption are under-stated.

If the Demand Curve Fails to Capture All of the Benefits