Saturday, 23 October 2010

Spains tough anti-tobacco laws

This BBC clip reports that Spain is set to restrict smoking

http://www.bbc.co.uk/news/world-europe-11593698

a) Explain, using economic terms, why Spain is enforcing these restrictions.
b) Explain using a diagram, how the restrictions should reduce the market failure
c) Discuss the extent to which the policy is likely to succeed.

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