What is Market Failure? I A Level and IB Economics

Market failure occurs when freely functioning markets fail to allocate scarce resources in a way that optimises social welfare. This short introductory topic video explores some of the main examples of market failure including from the housing and labour markets.

#aqaeconomics #ibeconomics #edexceleconomics

[jonclark]

Thanks for this. Useful description of market failure.

[leemon]

Thank you, sir. what are the effects of market failure on prices, efficiency of market operation and economic welfare?