1) Define demerit goods.[3]
2) Define Tax. [2]
3) Explain the reasons for the withdrawal of taxes from the saturated fat products.[8]
4) Do you agree with the govt. to impose tax on such products. Explain with the help of graphs. [5]
5) Using your knowledge from text and economic theories, justify up to what extent taxes on demerit goods are in greater welfare of society.[10]
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