This BBC clip and associated article outlines a new method of convincing people to opt for more economical cars
http://news.bbc.co.uk/player/nol/newsid_7290000/newsid_7291000/7291082.stm?bw=bb&mp=rm&asb=1&news=1&bbcws=1
http://news.bbc.co.uk/1/hi/sci/tech/7290467.stm
a) What are the 2 conditions for something to be described as a demerit good?
b) To what extent are gas guzzlers demerit goods?
c) How does the market fail with demerit goods
d) How would this proposal reduce the market failure?
e) To what extent do you believe this proposal is likely to be succesful?
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