Question

Discuss why market failure could occur in an economy​

Answer 1

Answer:

Market failure occurs when there is a state of disequilibrium in the market due to market distortion. It takes place when the quantity of goods or services supplied is not equal to the quantity of goods or services demanded. Some of the distortions that may affect the free market may include monopoly power.

Answer 2

Answer:

people can offer a lower price then I wat it should go for so the market starts to go down cause people are offering lower