7. Market failure is a situation in which: a. There is a sharp drop (more than 5%) of the broad stock indices over the course of a single trading day on the New York Stock Exchange b. There is a willing seller of a product, there is a willing buyer of that product, the seller and the buyer can agree on price, but the threat of opportunistic behavior makes the transaction between them impossible c. Capital markets systematically underestimate the inherent level of risk present in the securitized debt obligations, overinvest in them, and thus cause a financial crisis d. There is a willing buyer of a product, but the sellers' industry is so fragmented that the price levels for their products remain too high, hence the transaction cannot go forward