A demerit good is a good or service that
A)the political process has deemed socially desirable.
B)can be consumed by one individual without affecting the consumption of another individual.
C)is not subject to the principle of mutual exclusivity.
D)the political process has deemed socially undesirable.

Question

Quizplus · Accepted Answer

A demerit good is a good or service that is deemed socially undesirable. These goods are harmful to individuals or to society as a whole, and therefore the government may intervene to discourage their consumption. Examples of demerit goods include cigarettes, alcohol, and drugs.

A Demerit Good Is a Good or Service That