Friday, June 13, 2008

Unit 2: Government action to overcome market failure: Sunbeds and under 18's

The BBC reports that uner 18's are to be banned from using commercial sunbeds

a) How is the free market in sunbeds failing?
b) What does the article suggest is the cause of the market failure?
c) Why is the government stepping in and introducing legislation?
d) What punishments will the government impose?
To what extent do you believe such a policy will reduce the market failure regarding under 18's consumption of sunbeds?

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