When someone buys a used car and finds out later that it has defects that were not disclosed, this is a form of market failure.

Name: When someone buys a used car and finds out later that it has defects that were not disclosed, this is a form of market failure.
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Quizplus · Accepted Answer

This situation is considered a form of market failure due to information asymmetry, where the seller has more information about the product than the buyer, leading to an inefficient market outcome.

When Someone Buys a Used Car and Finds Out Later