Market Failures (3): Negative Externality from Consumption, Rent Seeking, & Lobby

Explore the economics of demerit goods and negative externalities from consumption. Learn how private and social demand curves interact, how to identify deadweight loss, and why industries use lobbying and rent seeking to oppose efficient market policies.

• Understand negative externalities from consumption and their societal impact.
• Learn to distinguish between private and social demand curves on a graph.
• A simple visual trick to correctly identify the deadweight loss triangle.
• Discover why firms oppose policies that reduce deadweight loss to save profits.
• How industries resist safety regulations to protect their profits.
• Understand rent seeking and how lobbying leads to inefficient market outcomes.