If a Market Is Missing

question 105

Multiple Choice

If a market is missing:

• A) deadweight loss is zero.
• B) total surplus is maximized.
• C) the market is inefficient.
• D) trades are not mutually beneficial.

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Definitions:

Buyer's Income

Buyer's Income is the total earnings or revenue available to consumers that influences their ability to purchase goods and services.

Burden of a Tax

The economic impact of a tax on the welfare of buyers and sellers, which can affect market behavior and economic efficiency.

Perfectly Elastic

A situation in economics where the quantity demanded or supplied changes by an infinite amount in response to any change in price.

Perfectly Inelastic

A market scenario where a change in price does not affect the quantity demanded or supplied, often represented with a vertical demand or supply curve.