A. No. You need to see prisons as a Public Good

A. Probably not. I guess you could argue that that Traffic Wardens are one way councils intervene to reduce congestion ( this causes negative externalities). You could also argue that they are employed to enforce laws so are a Public Good like the police. Increasingly councils have actually employed more traffic wardens as they raise a lot of revenue for them. This is particularly important as the government cut back on spending to attempt to reduce the deficit.

A. A minimum price may reduce the consumption of alcohol but it will need to be sufficiently above the market clearing price to have much impact. Also for some consumers demand may be relatively inelastic which again would minimise the impact. As with any market failure a range of policies are usually most effective so health promotion, licensing hours and possibly raising the drinking age are also important. Finally there may be government failure as the higher alcohol price could increase the size of a shadow market.

If PED is elastic, then firms should reduce prices and as a result, total revenue will INCREASE because the % increase in quantity demanded will outweigh the % decrease in price per unit sold, thus generating greater profits. If PED is inelastic, meanwhile, then firms should increase prices and as a result, total revenue will INCREASE, because the % decrease in quantity demanded will be outweighed by the % increase in price per unit sold. 

A. Many interventions by govt can lead to government failure. This is a key way to evaluate. One such example would be increasing the tax on demerit goods such as alcohol. Such action can lead to an increase in Shadow Markets.

A. More Elastic as they can increase production fairly easily if price rises. If they were at full capacity it would be difficult to increase production in response to an price increase