Sunday, February 03, 2008

Unit 2: Negative externalities associated with underage drinking

The BBC reorts that the police are to get new powers to confiscate alcohol from under-18s who drink in public

http://news.bbc.co.uk/1/hi/uk_politics/7224701.stm

a) Why is the government introducing this new legislation?
b) How does the free market result in market failure?
c) To what extent do you believe the new law will reduce the market failure?

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