Too few of these services are available.
Important needs cannot be left to chance.
Voters put pressure on local governments.
There is no easy way to charge individual users
Starting a restaurant is expensive.
Restaurants often go out of business.
All restaurants serve food, and each restaurant is distinctive.
All restaurants serve people, and one restaurant serves the most people.
You decide to stop snacking between meals.
You enjoy looking at your neighbor’s garden.
Your shoe store stops selling your favorite style.
Your new bicycle goes faster than you expected
by supply and demand
By government regulation
By cultural ideals of fairness
By agreement among producers
Monopolistically competitive markets.
no seller sells a product above the market price.
a single seller can affect price.
Products are similar but not identical.
Numerous restrictions prevent firms from entering the market.
Go out of business.
Raise their prices.
lower their prices.
Maintain existing prices.
They provide public goods.
They lead to higher price.
They cause imperfect competition.
their costs and benefits are not reflected in the market prices paid by buyers and sellers (or the demand and supply model).