1.3.2 Each instance that follows is an example of one of the four types of market failure discussed in this chapter. In each case, identify the type of market failure and defend your choice briefly.

a. Everyone in town would benefit from the acquisition of two new fire engines, but the town does not have the money to pay for them and no one is willing to purchase and donate them to the town.

b. The only three gas stations in a small town all agree to raise their prices.

c. Your electrician convinces you that you need to replace your entire breaker box when all you really need is a new breaker switch.

d. Your neighbor refuses to vaccinate his children for measles.