From the economist's perspective,"market failures" basically arise when:
A) the quantity demanded for a good or service is greater than the quantity supplied of the good or service.
B) the quantity supplied of a good or service is greater than the quantity demanded for a good or service.
C) demand and supply do not accurately reflect all the benefits and all the costs of production.
D) the market system is unable to adapt to or to accommodate change.

Question

Quizplus · Accepted Answer

Market failures occur when the market fails to allocate resources efficiently due to the fact that demand and supply do not accurately reflect all the benefits and all the costs of production. This results in a misallocation of resources, which can lead to a reduction in overall welfare.

From the Economist's Perspective,"market Failures" Basically Arise When