Which of the following is an example of a market failure? (A) There are not enough tickets available to concerts of extremely popular performers and artists

(D) Extensive decreases in the prices of electronic equipment resulted in large numbers of bankruptcies in the computer industry

Based on the law of demand and supply when demand is lower than supply prices drop until a new price equilibrium is reached. In electronics, there are two reasons for prices to drop, either the supply has risen more than the demand or electronic equipment has become cheaper to produce. New technology can be produced in limited quantity but when innovations have been introduced it can be mass produced to make it cheaper. When prices in electronic equipment drop, sales should increase since consumers will be enticed to buy the product. This means companies will experience growth. When prices drop and results to bankruptcies this means that there is inefficiency in the distribution of goods in the market. It might be that when the price dropped consumers bought their electronic equipment from one company only boosting that company and leaving the competitors to go bankrupt. This results in market failure.