Unit 1: A fat tax in Denmark

For a long time, people combatting obesity have suggested a fat tax. The BBC reports Denmark has now led the way in intrducing such a tax

http://www.bbc.co.uk/news/world-europe-15140821

and possibly in the UK

http://uk.health.lifestyle.yahoo.net/uk-government-may-consider-a-fat-tax.htm

a) What is the market failure this tax will combat?
b) Use a diagram to explain how the tax should reduce the market failure
c) Discuss the extent to which this policy is likely to succeeed