Economics 9708 · AS & A Level · Government intervention in markets
Explain, using examples, how imperfect information among consumers influences their consumption of merit goods and demerit goods.
Discuss why, in most mixed economies, resources are allocated mainly through market forces and the price mechanism.
This 20-mark question has a full step-by-step worked solution and mark scheme. One marking point: “Showing knowledge and understanding of imperfect information as it applies to a merit good and a demerit good, using suitable examples” …