Should the fizzy drinks market be regulated or left to the free workings of the market?

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

MB
Answered by Matt B. Economics tutor

1667 Views

See similar Economics A Level tutors

Related Economics A Level answers

All answers ▸

Why are no supernormal profits made in perfect competition in the long run?


How is unemployment related to causes of inflation?


Why is supply side policy used a lot in modern economies?


How can globalisation increase domestic competitiveness?


We're here to help

contact us iconContact ustelephone icon+44 (0) 203 773 6020
Facebook logoInstagram logoLinkedIn logo

© MyTutorWeb Ltd 2013–2025

Terms & Conditions|Privacy Policy
Cookie Preferences