If many people in a community get flu shots, the whole community benefits, including those that 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 is an example of a demand-side market failure, where the private demand for flu shots does not account for the positive externalities that occur when many people get vaccinated, leading to under-consumption of the vaccine and a lower overall societal benefit.

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