Monday, March 24, 2008

Unit 2: Reducing consumption of cigarettes

This BBC clip and article outlines 2 possible new new restrictions on the sale of cigarettes

a) Explain what type of market failure cigarettes represent
b) What 2 new proposals are suggested in the video clip
c) Taking these and other measures the government has taken recently, use economic theory to evaluate how successful the government is likely to be in reducing cigarette consumption (and so the market failure)

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