An example of market failure due to incomplete information is: Multiple choice question. a cable company that prevents competition by owning the local delivery network decides it can raise its prices sharply. the buyer of a house doesn't know that the electrical wiring is aluminum, and prone to cracking - a fire hazard. many households with children move to a popular elementary school district, thereby over populating the school. an industrial plant that produces very pungent fumes locates next to a residential area.