at the market price quantity supplied is greater than quantity demanded

at the current market price quantity demanded is greater than the quantity supplied

some consumers are willing to pay less than the equilibrium price but do not need to do so

some consumers are willing to pay more than the equilibrium price but do not need to do so

when the demand curve for a product is located too far to the left

when firms pay more than the oppurtunity cost of resources

only in capitalistic societies

when firms use resources without being compelled to pay for their full costs

private goods

consumption goods

capital goods

public goods

their production seriously distorts the distribution of income

public enterprises can produce such goods at lower cost than can private enterprises

private firms cannot stop consumers who are unwilling to pay for such goods from benefiting from them

there is no need or demand for such goods

mental shortcuts

brain stimulators

mental drainers

costly shortcuts

the result of market failure

brain disorders

the result of over-rationalizing

misperceptions or misunderstandings that cause systematic errors

People avoid difficult computations if possible

People have stable preferences

People are often selfless and generous

People place insufficient weight on future events and outcomes

complete rationality

markets

government

incomplete rationality

availability heuristic

planning fallacy

framing effect

hindsight bias

People experience loss aversion, meaning that for losses and gains near the status quo, gains are felt much more.

People experience loss aversion, meaning that for losses and gains near the status quo, losses are felt much more.

People would like to move away from the status quo.

People experience increasing marginal disutility. That is, each additional dollar lost increases disutility by a larger amount.