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Economics A Level (DONEEEEEEE)

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Pregunta:

Why may Demerit Goods be over-consumed?

Autor: eric_galvao



Respuesta:

-Free Market does not Care for the Negative Externalities and thus Production and Consumption are Above Socially Optimal Level. -Imperfect Information means that Consumers won't 100% know the Damage Internally and Externally, so, Demand isn't as Low as it Should be


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