Sunday 2 December 2012

Cigarettes & Alcohol

Both these products have been making headlines over the past week as governments try further methods to correct the market failure which arrises from these two de-merit goods. The UK government is set to bring in a minimum price 45p per unit for the sale of alcohol to try and tackle problem drinking whilst Australia stepped up its regulation of cigarette packings by becoming the first country in the world to introduce plain packaging. Will these methods be enough to correct the failure?