Question: (a) Illustrate and explain why, if there are negative externalities of consumption, this is seen as a market failure. (b) The introduction of electric vehicles

(a) Illustrate and explain why, if there are negative externalities of consumption, this is seen as a market failure. (b) The introduction of electric vehicles has made the demand for petrol driven cars more elastic than the demand for petrol. In the light of this knowledge using diagrams compare and contrast the effects of putting an indirect tax on petrol driven cars with one on petrol

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