Economics · Market Failure and Public Finance
How does the government typically intervene to reduce the supply and demand of demerit goods?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1By directly increasing consumption incentives
- 2By increasing production subsidies
- 3By imposing high sales taxes or excise duties on the goods✓
- 4By giving tax rebates
Correct answer
By imposing high sales taxes or excise duties on the goods
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