When what people pay for a good does not necessarily reflect the real value they place on it, it is likely that the:
A)free rider problem exists.
B)good will be oversupplied.
C)tragedy of the commons problem exists.
D)good is nonrivalrous.

Question

Quizplus · Accepted Answer

The free rider problem occurs when individuals consume a good without paying for it or pay less than the good's value to them, leading to underprovision of the good.

When What People Pay for a Good Does Not Necessarily