For which of the following reasons might a market be missing?
A) Public policy prevents the market from existing.
B) The production of a particular good is banned.
C) Potential buyers and sellers lack accurate information.
D) All of these are reasons why a market might be missing.

Question

Quizplus · Accepted Answer

All of the reasons listed can prevent a market from existing or functioning properly. Public policy can create regulations that restrict certain transactions or industries, which can limit the existence of a market. If the production of a good is banned, there cannot be a market for that good. Finally, if there is a lack of accurate information among potential buyers and sellers, it may prevent them from engaging in transactions, which can lead to a missing market.

For Which of the Following Reasons Might a Market Be