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Paper 1 real-world example: The market for a demerit good and government policy

There has been a huge increase in the output of cocaine from Columbia in the last 12 months. The country’s production of the coca plant which is used to produce cocaine increased by 14% last year to 1400 metric tons. More and more agricultural land in Columbia is being turned over to the production of cocaine with a 43% increase to 204,000 hectares.It takes two years for the newly sowed coca plants to yield a crop...

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