When consumers don't have to pay for a common resource, the market experiences:
A)underconsumption.
B)oversupply.
C)overconsumption.
D)irrational consumption.

Question

Quizplus · Accepted Answer

When consumers don't have to pay for a common resource, it often leads to overconsumption because individuals have no incentive to conserve, leading to a depletion of the resource faster than if it were priced. This is known as the tragedy of the commons.

When Consumers Don't Have to Pay for a Common Resource