Monday, July 09, 2007

Unit 2: Food as a demerit good

This clip suggests consumers have imperfect knowledge when the choose what to eat and so sandwiches may be an example of a demerit good

< http://www.bbc.co.uk/mediaselector/check/player/nol/newsid_6270000/newsid_6272100?redirect=6272196.stm&news=1&amp;amp;amp;nbram=1&bbwm=1&nbwm=1&bbram=1 >

a) How doea the sandwhich market fail?
b) How could this market failure be overcome

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