IB Internal Assessment (IA) Economics Higher level (HL) 2026 May Solution & Worked Answer
This commentary evaluates the effectiveness of government legislation banning disposable vapes to address market failure caused by negative externalities of consumption. Using a microeconomic framework, the analysis identifies disposable vapes as a demerit good that leads to environmental degradation and unsustainable waste management.
Through supply and demand diagrams, the paper models the shift from private to socially optimal consumption, illustrating the reduction in deadweight welfare loss. The argument concludes that while the ban enhances sustainability, it presents significant limitations, including the potential emergence of unregulated black markets and unintended health shifts toward traditional smoking.
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