Question

Market failure is a situation in which A. the market does not provide the ideal or optimal amount of a particular good. B. prices are too high for "average" people to buy necessities. C. there are too many buyers but not enough sellers. D. there is a question over the quality of a product for sale.

Answer 1

A. the market does not provide the ideal or optimal amount of a particular good.

Step-by-step explanation:

A market failure is the situation when demand does not equal supply. Various problems are caused by a market failure. In other words, goods and services are not optimally distributed in the free market. The demand of the people wanting a particular good is not satisfied, so a discrepancy between demand and supply begins to take action.