When the market fails, a government can step in and use regulation to try and correct the market failure
This BBC story highlights such a case
http://news.bbc.co.uk/1/hi/health/6732805.stm
a) How would the market fail if the advertising was allowed to take place?
b) Why have the government (in the form of the ASA) intervened here?
c) Why is whole fat milk a demerit good? Make sure you cover both aspects of what makes a demerit good
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