Blog
Will this stop people buying cigarettes? Market failure in action
11th November 2011
When I teach the cures of market failure I always say LETS intervene. This means governments could legislate, educate, tax or subsidise to reduce the market failure. This video shows a great example of the Australian government using legislation to reduce consumption of cigarettes which are a demerit good. Do your class think this is a good solution or can they think of anything better?
Sky News