demerit good

demerit good definition - business

demerit good

A good or service that policymakers feel is likely to be overconsumed and should be taxed or restricted in some manner. For example, tobacco products are generally considered demerit goods, justifying a host of taxes that reduce consumption. Compare merit good.

The American Heritage® Dictionary of Business Terms Copyright © 2009 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.

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