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What economic measure can the Government take to reduce demand for commodity X which is harmful for health?

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Question

What economic measure can the Government take to reduce demand for commodity X which is harmful for health?

Very Short Answer
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Solution

The government can impose a tax on the commodity, raising its price and reducing its demand.

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Chapter 3: Demand - OBJECTIVE QUESTIONS [Page 3.47]

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Sandeep Garg Introductory Microeconomics [English] Class 11
Chapter 3 Demand
OBJECTIVE QUESTIONS | Q 28. | Page 3.47
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