Notesale: Turn your study into money

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Discuss the viewpoint that the use of minimum prices should be used to
reduce the consumption of alcohol compared to alternative methods
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The theory of the Government enforcing the minimum
prices of alcohol per unit is that it will in turn reduce
consumption of alcohol but continue to maintain the
profit that is made from it
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The demand equilibrium contracts along the demand
line (A-B) when the price of alcohol is changed from OP
to 45P
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Because of this the supply also is shifted
to the left to make a new line as less supply is needed
when there is less demand
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This is because as each individual unit will cost more it will be hitting harder on
the people that only drink a smaller amount
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But the argument that the doctor in the audio
clip mentioned is that it reduces the healthcare costs put on the community and taxpayer also it could
save lives
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But there is no real way of measuring this and the possible
implications of the raising of alcohol prices
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One option is for a ban on any sales of alcohol that do not meet the costs of
production + V
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T + Duty tax
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