Friday, November 17, 2006

Unit 2: Government response to demerit goods: Junk food advertising ban

Ofcom is planning to restrict the advertising of junk food

http://news.bbc.co.uk/1/hi/health/6154600.stm

a)Who is the ban aimed at?
b) Why is junk food regarded as a demerit good in this case ? You need to cover both criteria
c) Why is the ban on advertising these products aimed at children and not total?

Here is the response of the manufactures

http://news.bbc.co.uk/1/hi/business/6157708.stm

d) Evalute the validity of their response

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