Market failures
A)fall only on the demand-side.
B)fall only on the supply-side.
C)can fall on either the demand-side or the supply-side.
D)fall on non-competitive markets only.

Question

Quizplus · Accepted Answer

Market failures can occur on either the demand or supply side. For example, on the demand side, consumers may not have perfect information about the product, resulting in a market with asymmetric information. On the supply side, there may be externalities such as environmental pollution that are not factored into the market price. Additionally, market failures can occur in both competitive and non-competitive markets.

Market Failures