People enjoy outdoor holiday lighting displays and would be willing to pay to see them, but can't be made to pay. Because most people who put up lights are unable to charge others to view them, they don't put up as many lights as people would like. This is an example of a

A) negative externality.
B) supply-side market failure.
C) demand-side market failure.
D) government failure.

Question

Hassan Awada · Accepted Answer

Final Answer : C, Explanation :  This is an example of a demand-side market failure because it involves a situation where the market demand does not accurately reflect the full value that consumers place on a good or service, in this case, outdoor holiday lighting displays. People value and enjoy these displays but cannot be charged directly, leading to fewer displays than society would prefer.

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