A demerit good:
A) Is one that is available to everyone.
B) Cannot be provided at all in the free market.
C) Is illegal.
D) Is one that society believes has more costs than individuals themselves think it has.

Question

Quizplus · Accepted Answer

Demerit goods are considered to have more social costs than the individuals consuming them realize, leading to negative externalities. Society often believes these goods are over-consumed, hence they may be taxed or regulated.

A Demerit Good