There is no age requirement to purchase a computer but there is one to buy tobacco and alcohol

Marketing Dec 26, 2020

There is no age requirement to purchase a computer but there is one to buy tobacco and alcohol. Of the reasons for limiting a market, economists rely on which to justify this?

a) These goods are immoral when consumed by the young.

b) These goods have external costs when consumed by the young.

c) Young consumers have inadequate information.

d) Government is necessary to control all consumption.

Expert Solution

a) These goods are immoral when consumed by the young

Tobacco and alcohol are demerit goods and are detrimental to health. The consumption of these items often contains internal costs for the consumer and external costs for the upcoming future development of nations. Hence, the government is required to put blockhead on the consumption of these goods by young consumers.

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