market failure and gov intervention- market Flashcards
1
Q
upper area of demand curve
A
consumers who buy
willing to pay highest price of good
they receive most benefit
2
Q
lower area of supply curve
A
producers who sell, willing to sell at lowest price, lowest cost of production
3
Q
efficient
A
most benefit and lowest cost
4
Q
market failure
A
price mechanism leads to misallocation of resources
5
Q
reasons for market failure
A
positive externalities
negative externalities
information gaps
public goods
6
Q
A
