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From course:

Economics A Level (DONEEEEEEE)

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Question:

What are the Reasons why Imperfect Information affect the Consumption of Merit and Demerit Goods?

Author: eric_galvao



Answer:

-Consumers may not know the Full Benefit of a Merit Good - like a Good Education leads to a Better Salary -Consumers may just not Have the Information to decide which Good is Right -Consumers may also not know how Harmful a Demerit Good is -Advertising for Demerit Goods, like Tobacco, can just 'Skip' over the Health Dangers


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