If social values are not reflected in the market values determined by the market demand and market supply curves,the competitive market equilibrium output will still be the socially efficient level of output.

Question

Quizplus · Accepted Answer

If social values are not reflected in the market values, the market equilibrium may not result in the socially efficient level of output. This can lead to market failure and the need for government intervention to correct the situation.

If Social Values Are Not Reflected in the Market Values