Demand-side market failure
A)arises in situations in which a firm does not have to pay the full cost of producing its output.
B)arises when it is impossible to charge consumers what they are willing to pay for a product.
C)exists in equilibrium with supply-side market failure.
D)happens only when the quantity of a good demanded is less than that which is supplied.

Question

Quizplus · Accepted Answer

Demand-side market failure occurs when it is impossible to charge consumers what they are willing to pay for a product, often due to non-excludability or public goods, leading to underproduction or underconsumption.

Demand-Side Market Failure