Demand & Supply Economics

Subjech Economics Topic > Demand & Supply Economics Paper details v The Government of Bermuda has decided that the consumption of alcohol must be addressed. As a result they have announced today the followin" rel="nofollow">ing: a) a tax of 10% on every alcoholic beverage - this will impact the supply curve, b) an in" rel="nofollow">increase in" rel="nofollow">in the legal drin" rel="nofollow">inkin" rel="nofollow">ing age to 21 - this will impact the demand curve. 1) For each of the above, draw a separate graph, explain" rel="nofollow">inin" rel="nofollow">ing the implications 2) Assess the advantages and disadvantages of the taxation and drin" rel="nofollow">inkin" rel="nofollow">ing ban for two different groups in" rel="nofollow">in society. Note the alcohol is in" rel="nofollow">inelastic.