Unit 2.8: Demerit goods / negative externalities
This page contains the activities, with student access, for the teacher page: Unit 2.8: Demerit goods / negative externalities Demerit good - can be defined as one that produces negative externalities when consumed. They are generally over consumed in a free market, relative to the socially optimum level of output and provide another example of market failure. Negative externalities – spillover costs to a third party...