Which of the following is the best example of market failure?
A) Lucian wants more video games but doesn't buy them because his willingness to pay is less than the equilibrium price in the market.
B) Kara's Kitten Shop won't sell more purebred cats because the equilibrium price in the market is less than it would cost her to provide more.
C) Alex and others in a community want a new outdoor soccer field and are willing to pay to use it, but no private business is willing to build it.
D) Government fixes the price of gasoline, resulting in a shortage.
Correct Answer:
Verified
Q2: Which is an example of a market
Q3: Wendy claims that the right mix of
Q4: Q5: Which of the following statements is correct Q6: Mandated reductions in tailpipe emissions from automobiles Q7: "Cap-and-trade" programs: Q8: It has been proposed that a government Q9: Suppose the government imposed a carbon tax Q10: The rationale for ability-to-pay taxation and the Q11: Payroll taxes (Social Security and Medicare) are:
A) create a market for pollution
A)
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