If many people in a community get flu shots, the whole community benefits, including those who did not get flu shots. Therefore, not enough people may decide to get the shots. This is one illustration of
A)the market allocating resources efficiently.
B)monopoly power due to lack of competition.
C)supply-side market failure.
D)demand-side market failure.

Question

Quizplus · Accepted Answer

This scenario is an example of a demand-side market failure because it illustrates a situation where the benefits of a good or service (in this case, flu shots) extend beyond those who directly pay for or consume it, leading to underconsumption. This is because individuals may not get vaccinated, relying on others to do so to create herd immunity, which benefits even those who are not vaccinated.

If Many People in a Community Get Flu Shots, the Whole