If the quantity demanded of a public good is greater than the quantity supplied,
a. an excess quantity demanded emerges, which could be eliminated (corrected) by the government decreasing taxes to allow people to buy more of the good
b. it is proof that market failure exists
c. it is proof that government failure exists
d. an excess quantity demanded emerges, which could be eliminated (corrected) by the government increasing taxes to provide more of the good
e. the market will create the supply to bring the market for the public good into equilibrium
D
You might also like to view...
Why is it useful to make a distinction between debt and equity instruments?
What will be an ideal response?
If marginal cost is constant, what happens to a market if it alters from perfect competition to monopoly without any change in the position of the market demand curve or any variation in costs?
A) Consumer surplus increases, and the previously existing deadweight loss decreases. B) Consumer surplus increases, and the previously existing deadweight loss increases. C) Consumer surplus is eliminated, and an equal-sized deadweight loss is created. D) Consumer surplus decreases in size, and a deadweight loss is created.