Lack of information leads to less informed decisions being made and therefore an undesirable equilibrium and market failure. In this day and age is it possible for a smoker to not know the consequences of his/her action? What about transfats? According to the BBC transfats account for 20 000 heart attacks and 7000 deaths in the UK each year . What are transfats?
“Artificial trans fats are used both in processed food and in restaurants as a way to improve the shelf life or flavour of foods. The fats are created when hydrogen is added to vegetable oil, making it a solid.”
Did you know that up until August this year Mcdonald’s hamburgers were made of meat that was deemed unfit for human consumption. To make the meat fit for human consumption they “washed” it in ammonium hydroxide!