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3.1.2 addressing the over-consumption of demerit goods and the under-consumption of merit goods
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Why Consumption Goes Wrong

Why Consumption Goes Wrong

A merit good may be under-consumed because consumers underestimate its private benefits, such as the future earnings gained from education. A demerit good may be over-consumed because consumers underestimate its private costs, such as the long-term health effects of smoking. These are examples of imperfect information affecting consumers' private decisions.

3.1.2 addressing the over-consumption of demerit goods and the under-consumption of merit goods Lesson

  1. Intl A Level
  2. /Economics
  3. /3.1.2 addressing the over-consumption of demerit goods and the under-consumption of merit goods

Step-by-step lessons on CIE Intl A Level Economics 3.1.2 addressing the over-consumption of demerit goods and the under-consumption of merit goods. Each one builds up to exam-style questions.

Lessons