Demerit good

<p>In <a href="/facts/Economics/HYctA2Dn">economics</a>, a demerit good is "a <a href="/facts/Good_(economics_and_accounting)/AtK6gQh2">good</a> or <a href="/facts/Service_(economics)/B7L4tR8r">service</a> whose consumption is considered unhealthy, degrading, or otherwise socially undesirable due to the perceived negative effects on the consumers themselves"; it could be over-consumed if left to market forces of <a href="/facts/Supply_and_demand/KprL1fvc">supply and demand</a>. Examples of demerit goods include <a href="/facts/Tobacco/bTD4RUPQ">tobacco</a>, <a href="/facts/Alcoholic_beverage/HSHVWBtX">alcoholic beverages</a>, <a href="/facts/Recreational_drugs/eoBD3vKn">recreational drugs</a>, <a href="/facts/Gambling/Hgw4a9DH">gambling</a> and <a href="/facts/Junk_food/A8y8wz30">junk food</a>. Because of the nature of these goods, <a href="/facts/Government/N4bYL0VC">governments</a> often levy <a href="/facts/Taxes/8cXNkA00">taxes</a> on these goods (specifically, <a href="/facts/Sin_tax/DV5p6enr">sin taxes</a>), in some cases regulating or banning consumption or advertisement of these goods.
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Demerit good open-in-new

Demerit good