What are demerit goods tutor2u?
What are demerit goods tutor2u? De-merit goods deliver a lower benefit to the consumer than he/she realises at the time of consumption. They tend to be over-consumed in the free market leading to a misallocation of resources, i.e. market failure. Why is a demerit good Overconsumed? This is because when individuals consume demerit goods it […]