A market failure is when:

Question $13$ options:

a$)$

The free market leads to a high equilibrium price, causing the good to be very expensive

b$)$

The free market does not lead to the socially optimal outcome, often by causing too much or too little of the good to be produced.

c$)$

Sellers win at the expense of buyers

d$)$

The free market leads to a low equilibrium price, causing sellers to receive too little for their time and effort.