Unit 2: Further government action to reduce the market failure associated with excessive alcohol consumption by youngsters

The BBC reports likely proposals by the Scottish government to reduce excessive alcohol consumption by youngsters

http://news.bbc.co.uk/1/hi/scotland/7455391.stm

and here are the actual proposals

http://news.bbc.co.uk/1/hi/scotland/7458102.stm

a) How does the free market fail in this instance?
b) Outline the arguments for and against this extension of legislation to reduce the market failure
c) Discuss the likeyhood of such a policy reducing the market failure