This Ch4 article and video show one consequence of the government actions to reduce tobacco consumption
http://www.channel4.com/news/articles/business_money/counterfeit+tobacco+8216kills+4000+a+year8217/3457737
a) Why are the twin government policies of high indirect axation and regulation not reducing the market failure?
b) What further market failures arise from this "free" black market?
c) Suggest actions the government could take to reduce/eliminiate this black market
d) To what extent do you believe such policies would be successful?
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