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1.6 Market failure

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Question 15

People who buy fireworks pay the purchase price and enjoy the display. The noise disturbs nearby residents, who receive no compensation.

Explain why the market may result in more fireworks being purchased than is best for society.

[2]
Markscheme

1.6 Market failure Questions

  1. GCSE
  2. /Economics
  3. /1.6 Market failure

83 exam-style questions on AQA GCSE Economics 1.6 Market failure, covering 1.6.1a Market failure as misallocation of resources, 1.6.1b Government intervention, 1.6.2a Defining externalities, and 1.6.2b Positive and negative externalities. Each one has a worked solution and a mark scheme showing where the marks go.

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