Demand-side market failures refer to those situations when there is a shortage in the market because buyers
want to buy more than what is available in the market.

Question

Quizplus · Accepted Answer

Demand-side market failures actually occur when the demand curve does not reflect consumers' full willingness to pay for a good or service, often due to external benefits or public goods characteristics, not necessarily because of a shortage of goods.

Demand-Side Market Failures Refer to Those Situations When There Is