Question

Please Identify Market Failure as Demand or Supply Side or neither:

-Public Benefit of Immunization

-Public cost of viral infection

-Public Benefit of educated society

-Public Cost of polluted air

-Cost of Groceries

Answer 1

People do not immunize themselves as much as they should. however there are benefits of immunization to the general public which means the market failure occurs from the demand side

Viral infection can be dreadful for the society but its cost is generally ignored by government authorities. This is a market failure from the supply side.

Public benefit of educated society is a market failure from the demand side because education has spillover effects which are not understood by the society

Air pollution is generated from the supply side of the market because the external cost is not realised.

There is no market failure in groceries because the demand and supply determine the social equilibrium.