Unit 2: More evidence of alcohol as a demerit good

A great BBC video clip and associated article highlighting continued problems with excessive alcohol consumption in the UK

http://news.bbc.co.uk/1/hi/health/7519613.stm video
http://news.bbc.co.uk/1/hi/health/7518843.stm article

a) Why would alcohol be classed as a demerit good?
b) What actions have been taken so farto reduce the market failure?
c) What actions is the government now threatening?
d) To what extent do you believe the government can reduce the market failure associated with excessive alcohol consumption?