Economics 9708 · AS & A Level · Information failure

Information failure — practice question

Which merit good is most likely to be under-consumed?

  • Alevel of imperfect information among consumers: high; subsidy received by producers: yes
  • Blevel of imperfect information among consumers: high; subsidy received by producers: no
  • Clevel of imperfect information among consumers: low; subsidy received by producers: yes
  • Dlevel of imperfect information among consumers: low; subsidy received by producers: no

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