Question

Plz do it by type no write

1. Consider the market for buying and selling alcohol.

Suppose that, after a

series of troubling incidents, the city decides it needs to protect citizens by discouraging alcohol

consumption. Provide an example of a policy that would impact buyers in each of the ways

listed, then briefly explain which policy you expect would be more effective.

• A policy aimed at decreasing the quantity demanded of alcohol:

• A policy aimed at decreasing the demand for alcohol:

• Which would be more effective?

Answer 1

Policies such as:-

1) banning of all alcohol stores at road side- this will restrict the easy access.

2) heavy tax on alcohol - this will reduce the demand as according to the law of demand, price of any commodity is inversely proportional it's quantity demanded.

Can prove to be effective in reduction of alcohol consumption.

According to me the second suggestion of increase in tax policy would be more effective as, people won't be able to buy something so expensive and it will tie their hands.