Supply-side market failures occur when:
A) the demand and supply curves don't reflect consumers' full willingness to pay for a good or service.
B) the demand and supply curves don't reflect the full cost of producing a good or service.
C) government regulates production of a good or service.
D) a good or service is not supplied because no one wants it.

Question

Quizplus · Accepted Answer

Supply-side market failures occur when the demand and supply curves don't reflect the full cost of producing a good or service. This could happen due to externalities, imperfect information, or natural monopolies. The market may underproduce or overproduce the good or service, leading to an inefficient outcome.

Supply-Side Market Failures Occur When