Medical researchers have suggested that consuming too many sugary drinks is harmful to health. Which market failures could be addressed if the government intervened by introducing a tax on the sale of sugary drinks?
- Anegative externalities of consumption: no; negative externalities of production: yes; over-consumption of demerit goods: yes
- Bnegative externalities of consumption: yes; negative externalities of production: yes; over-consumption of demerit goods: no
- Cnegative externalities of consumption: yes; negative externalities of production: no; over-consumption of demerit goods: yes
- Dnegative externalities of consumption: yes; negative externalities of production: no; over-consumption of demerit goods: no