Demand & Supply Economics –

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

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