Which one of the following is an example of market failure?
The price of a service rising to ration scarce capacity during peak demand periods
Underconsumption of dental healthcare because consumers underestimate its long-term benefits
A decrease in the quantity of organic fruit demanded following a rise in its market price
Firms maximizing private profit by selecting the level of output where marginal revenue equals marginal cost
15 exam-style questions on Edexcel A A Level Economics 1.3.4 Information gaps. Each one has a worked solution and a mark scheme showing where the marks go.