1) Explain how at least three methods ofreducing market failure would work. (e.g. Totalban on gambling adverts, Introducing a newindependent regulator to monitor thegambling companies or increasing tax)2) Draw diagrams to show how each methodof reducing market failure would work.3) The impact of each method on consumerwelfare - consider both positive and negativeimpacts.4) The short term vs. long term impact of eachmethod - some methods may have animmediate impact, whereas others may bemuch more effective in the long term

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Explain lucing market failure would work

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Concept explainers

Market Equilibrium and Failure

The economy of a country or any place depends on the market demand and market supply of goods and services.

Question

1) Explain how at least three methods of
reducing market failure would work. (e.g. Total
ban on gambling adverts, Introducing a new
independent regulator to monitor the
gambling companies or increasing tax)
2) Draw diagrams to show how each method
of reducing market failure would work.
3) The impact of each method on consumer
welfare - consider both positive and negative
impacts.
4) The short term vs. long term impact of each
method - some methods may have an
immediate impact, whereas others may be
much more effective in the long term

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