When what people pay for a good does not necessarily reflect the real value they place on it, it is likely that the good:
A)is nonrivalrous.
B)will be undersupplied.
C)is easily excludable.
D)is not socially desirable.

Question

Quizplus · Accepted Answer

When people do not pay the real value they place on a good, it often leads to undersupply because the market does not receive the correct signals to produce the optimal quantity of the good.

When What People Pay for a Good Does Not Necessarily