(a)[8]
Explain, using examples, how a demerit good differs from a merit good.
(b)[12]
Discuss two methods that a government may use to influence the consumption of demerit goods.
Economics 9708 · AS & A Level · Government intervention in markets
Government intervention in markets — practice question
Worked solution & mark scheme
This 20-mark question has a full step-by-step worked solution and mark scheme. One marking point: “Explanation of what a demerit good is (for example, cigarettes), negative externalities, lack of information, leading to over-consumption” …
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