A property owner restores the frontage of a vacant building. This attracts more customers to nearby shops, which do not pay towards the restoration.
| Estimated benefit | Value |
|---|---|
| Private benefit to the property owner | £15,000 |
| Social benefit | £24,000 |
Calculate the external benefit created by the restoration.
Explain why the market may provide fewer restorations of this type than is best for society.
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.