The classification of merit and demerit goods depends upon a value judgement
Economists label some goods as merit goods and others as demerit goods. These labels reflect society's opinion about what people should consume — not a purely objective fact.
Real World
The UK government classifies gambling as a demerit good and restricts advertising — yet many individuals argue they consume gambling responsibly, illustrating that the label reflects a societal value judgement, not a universal fact.
Exam Focus
Use the word 'normative' in your answer and contrast it with 'positive' to show you understand why the classification is contestable, not objective.
Price Elasticity of Demand
PED = % change in quantity demanded ÷ % change in price
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