What Is a Merit Good?
What Is a Merit Good?
A merit good is under-consumed because consumers have imperfect information about its true benefits. It also involves a positive value judgement that society ought to consume more of it.
Step-by-step lessons on CIE Intl A Level Economics 1.6.3 nature and definition of merit goods: under-consumption as a result of imperfect information in the market. Each one builds up to exam-style questions.