Market Failure: Merit and Demerit Goods
Analysis of merit goods (under-consumed) and demerit goods (over-consumed) due to imperfect information and their implications for social welfare.
Key Questions
- Explain why merit goods are under-provided by the free market.
- Analyze the negative externalities associated with demerit goods.
- Evaluate the effectiveness of government intervention in correcting the consumption of merit and demerit goods.
National Curriculum Attainment Targets
Suggested Methodologies
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