Merit goods: are goods that bring unanticipated benefits to consumers, such that society believes they will be under consumed. The cause of this tends to be due to a lack of information, merit goods can be represented by the positive and negative consumption externality diagrams
De-merit goods: are goods that bring less benefits to consumers than they expect, it is over consumed in the free market. The cause of this tends to be due to a lack of information, de-merit goods can be represented by the positive and negative consumption externality diagrams
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