Market Failure Can Be Caused by

question 2

Multiple Choice

Market failure can be caused by

• A)low consumer demand.
• B)equilibrium prices.
• C)externalities and market power.
• D)high prices and foreign competition.

---

Definitions:

Inconsistencies

Situations or statements that are not in agreement, lack compatibility, or are full of contradictions.

Individuals

Distinct or separate entities, often referred to in the context of singular human beings.

Cognitive Dissonance

The psychological discomfort experienced by an individual who holds two or more contradictory beliefs, ideas, or values at the same time.

Behavior

The actions or reactions of an individual in response to external or internal stimuli.