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Demand and Supply of Healthier Fast Foods

   

Added on  2021-02-19

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Price and market
Demand and Supply of Healthier Fast Foods_1

Table of ContentsPART 3............................................................................................................................................13.0 Externalities...........................................................................................................................1PART 4............................................................................................................................................34.1) Conditions of demand of traditional fast food......................................................................34.2) Recommendation..................................................................................................................34.3 Demand and supply of healthier fast foods............................................................................44.4) Graph....................................................................................................................................4REFERENCES................................................................................................................................6
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PART 33.0 Externalities.Externality is an term of economics that refers to benefit or cost incurred or received by athird party. Third party does not have any control over the creation of benefit or cost. Externalityis of two types positive or negative. Externality can arise from consumption or development ofproducts or services. It may affect an individual, firm or whole society. The example ofexternalities of traditional fast food is the impact on health of consumers. For example –Whatever the type of product the cost is to be borne by manufacturers and other people which iscalled externality. More demand of fast food may increase the risk of chronic disease. Theexternalities are not involved in the price of fast food (Farquhar, Cotton-Barratt and Snyder-Beattie, 2017). Another externality is demand of traditional fast food is high although thenutritional value of food items is low. There may exist environmental externalities. Consumptionof fast food may also generate obesity in consumers. Due to which they may suffer from otherdiseases such as heart disease etc. Due to consumption of fast food there is a rise in obesityamong people that may create negative impact on health of consumers.In order to overcome the problems of externalities, government of Australia took variousactions. Australia New Zealand Food Authority Act, 1991 was developed and it has variousobjectives like developing measures to regulate the supply of food items. It helps to protecthealth and safety of consumers. One of the action that government may take is to impose tax onproducts. This will help to reduce negative externalities. Further, to overcome this problem,government of the country has started programs to motivate people to consume nutritious food.Moreover, government has implemented tax of low nutritional value food items. Australiangovernment has launched Measure-up campaign in year 2008. Unregulated market :1
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