Economics 9708 · AS & A Level · 7.4

7.4 — practice question

In a market economy, some goods are consumed too much. What is likely to be the reason for this?

  • AConsumer surplus exceeds producer surplus.
  • BConsumers undervalue the benefits of consuming the goods.
  • CThere is excess supply in the market for the goods.
  • DThere is imperfect information in the market.

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