When a producer cannot get all consumers of their product to pay for enjoying it, such as in the case of a
ﬁreworks display, then we have a demand-side market failure.

Question

Quizplus · Accepted Answer

This is because not all consumers of the fireworks display are paying to enjoy it, leading to a situation where the demand for the product is not reflected in the market price. This is a form of market failure.

When a Producer Cannot Get All Consumers of Their Product