Unit 2: Decreasing consumption of demerit goods; school dinners

This BBC clip and associated article, shows one school using regulation to reduce market failure

http://news.bbc.co.uk/player/nol/newsid_7310000/newsid_7317900/7317923.stm?bw=bb&mp=rm&asb=1&news=1&bbcws=1

http://news.bbc.co.uk/1/hi/health/7317389.stm

a) What is the market failure?
b) How will the regulation reduce the market failure?
c) To what extent do you beleieve this regulation would be successful in reducing the consumption of demerit goods (fast food) if applied nationally?