Question 3) In October 2011, Denmark became the rst country in the world to introduce a \"fat tax\". All foods (including meat, dairy products and cooking oil) with more than 2.3 percent of saturated fat in content would attract such a tax, to be levied on suppliers. The fat tax stood at 16 Danish Kroner (about 3.5 Australian Dollar) per one kilogram of saturated fat. The Danish government cited concerns of rising obesity as the reason behind this \"fat tax". It should be noted that Denmark has a free-health-care-forall system. similar to Medicare in Australia. a. Consider the market of food with high fat content (e.g._. butter, burgers, etc.) in Denmark. Explain how the phenomenon of externality may emerge out of this market. Clearly describe the nature of the externality at stake here. b. Draw an appropriate graph with curves representing private cost. social cost. private benet. and social benet for the market of food with high fat content in Denmark. On the graph. locate the area representing the fat tax. c. The fat tax was scrapped barely a year after its introduction and was deemed a failure. Do some research and nd out the factors contributing to the failure of this tax policy. Question 4) In each of the following cases. identify the type of extemality that may emerge. Clearly explain the nature of the externality in play. a. Many toiler paper companies use chlorine bleach to make their toilet paper white and last longer. The bleach is discharged directly to nearby rivers and oceans. wreaking havoc on the environment. b. In late 1997'. the Australian government launched a nationwide campaign for vaccination against measles. The campaign was deemed a success and in 2099. Australia declared that measles had successfully been eradicated