The Mechanics of the Market · Supply & Demand

Market Failure and Externalities

Identifying situations where the market does not allocate resources efficiently, such as pollution or public goods.

Key Questions

  1. 1Who should pay for the environmental cleanup when a factory produces waste?
  2. 2Why does the market often under-provide services like public parks or street lighting?
  3. 3How do taxes on harmful products change consumer behavior?

ACARA Content Descriptions

AC9HE7K02AC9HE7S04
Year: Year 7
Subject: Economics & Business
Unit: The Mechanics of the Market
Period: Supply & Demand

Suggested Methodologies

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