How does the government intervene in the supply and demand of demerit goods?

CA Foundation · Business Economics · MTP · September 2026
How does the government intervene in the supply and demand of demerit goods?
(A) A. by making public service announcements
(B) B. by upping the sales tax on the goods
(C) C. by requiring warning labels
(D) D. all the above are correct

Suggested Answer and Working Notes:

Correct Answer: Option (D)

D. all the above are correct

Topics: Public Finance

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