The statement mentioned above, regarding market failure, is true. Thus, option (a) is correct.
Market refers to the place where buying and selling of the goods takes place. There is the exchange of the goods with that of the monetary value provided by the buyer of the commodity.
The situation in which the production of the goods and services are lesser than the demanded by the buyers. It is the situation of Market failure which is often referred as demand market failure.
Therefore, it can be concluded that the above statement is true. Hence, option (a) is correct.
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