Which of the following is NOT an example of market failure A. Pitt Street Brewer
ID: 1133032 • Letter: W
Question
Which of the following is NOT an example of market failureA. Pitt Street Brewery keeps the thermostat at 70 degrees, which also cools Luna Pizza’s portion of the building
B. Atomic Laser Dome, the only venue in Greenville for laser tag, charges exuberantly high prices
C. Jake’s front lawn, near the ECU football stadium, generally has 2-3 empty beer cans on it following a game day
D. A pipeline closure caused a spike in gasoline prices for the southeast region Which of the following is NOT an example of market failure
A. Pitt Street Brewery keeps the thermostat at 70 degrees, which also cools Luna Pizza’s portion of the building
B. Atomic Laser Dome, the only venue in Greenville for laser tag, charges exuberantly high prices
C. Jake’s front lawn, near the ECU football stadium, generally has 2-3 empty beer cans on it following a game day
D. A pipeline closure caused a spike in gasoline prices for the southeast region
A. Pitt Street Brewery keeps the thermostat at 70 degrees, which also cools Luna Pizza’s portion of the building
B. Atomic Laser Dome, the only venue in Greenville for laser tag, charges exuberantly high prices
C. Jake’s front lawn, near the ECU football stadium, generally has 2-3 empty beer cans on it following a game day
D. A pipeline closure caused a spike in gasoline prices for the southeast region
Explanation / Answer
A pipeline closure caused a spike in gasoline prices for the southeast region is not an example of market failure, it is so because as due to closure of a pipeline the will lead to increase the price to reach to the equilibrium, so this is not a market failure.
Other option are example of mrke failure ;
Option A , in this there i negative externality as due to Pitt Street Brewery acivity Luna's Pizza portion cools.
Option B, in this due to monopoly causes the market failure as it charges exuberantly high prices.
Option C,in this also the effect of negative extenality is shown.
So thecorrect ans is D)
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