Asked by
Aleksandra Bucko
on Nov 25, 2024Verified
When a producer cannot get all consumers of their product to pay for enjoying it, such as in the case of a fireworks display, then we have a demand-side market failure.
Demand-Side
Pertaining to the aspects of the economy influenced by consumer spending and preferences, impacting overall demand for goods and services.
Market Failure
The inability of a market to bring about the allocation of resources that best satisfies the wants of society; in particular, the overallocation or underallocation of resources to the production of a particular good or service because of externalities or asymmetric information, or because markets fail to provide desired public goods.
Producer
An individual, company, or entity that creates goods or services to satisfy consumer demands.
- Understand the concept of demand-side market failure and the circumstances that lead to it.
Verified Answer
KD
Learning Objectives
- Understand the concept of demand-side market failure and the circumstances that lead to it.