Assignment 1 Principles Of Economics

The Effects of Prices on Alcohol Use and Its ConsequencesIntroduction:The impact of alcoholic-beverage taxes and prices on alcohol consumption and its related adverse consequences have baffled economists that even after increasing the taxes the consumption of alcohol have neither come down nor have unduly worried consumers. Idetification of four (4) key points that the article highlights.a. it was seen that effects on increase in monetary prices through raising taxes on alcohol consumption and a wide range of related behavioral and health problems have ead to reduced alcohol consumption, both in the general population and in certain high-risk populations, such as heavier drinkers or adolescents and young adults. 2. Increases in alcoholic-beverage taxes could be a highly effective option for reducing alcohol abuse and its consequences.3. Various public policies that can affect the full price of alcoholic beverages that is, the monetary costs which are the prices plus the time costs and expected legal costs associated with alcohol use also influence alcohol use.4. The studies indicate that he limited empirical evidence indicates that increases in alcoholic-beverage excise taxes likely would lead to even larger increases in prices. On the other hand, the relative