Tuesday, August 14, 2007

Unit 2: Demerit goods: Patio heaters

This BBC article outlines the growth in the sales of outdoor patio heaters

http://news.bbc.co.uk/1/hi/uk/6914276.stm

a) Why could the heaters be considered as demerit goods?
b) What actions could governments take to attack both aspects of patio heaters being demerit goods?

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