This question is asking about the demerit good of fizzy drink consumption. this consumption leads to a negative externality (external cost to society) - this could be added cost to NHS from the increased likelihood of fillings and diabetes.Regulation + - should reduce consumption through increased prices (consumer/producer burden) and /or decrease production -unintended consequences and possibility of government failure so Free market + - Adam smith - invisible hand = optimal -doesn't take into account behavioural economics