1.3.5.1a - Why market failure occurs: too much or too little of a good is failure produced and/or

Why market failure occurs: too much or too little of a good is failure produced and/or consumed compared to the socially optimal level of output.

Use a - why market failure occurs: too much or too little of a good is failure produced and/or to connect the rule to the data and decision in the question.

This matters because a - why market failure occurs: too much or too little of a good is failure produced and/or determines what can be inferred or chosen; begin with the stated conditions and keep the conclusion tied to the evidence.

Example: apply a - why market failure occurs: too much or too little of a good is failure produced and/or to one small, clearly defined case, show the key step or comparison, and explain the result in words.

Boundary: a - Why market failure occurs: too much or too little of a good is failure produced and/or is not a universal recommendation. Check the syllabus scope, assumptions, units and the limits of the evidence before generalising.