Supply and Demand Problems Concerning Ready Mixed Drinks

ECON 101 Essay 2009 Ready-to-drink (RTDs) alcopops are fundamentally the mixture of produce juices or downlike drinks with alcoholic swallows. They are sold in a pre-prepared format, devising them an effortless choice of alcoholic beverage, as opposed to commingle a drink oneself. The objective of the Australian Government in 2008 was to reduce the quantity of ready-to-drinks (RTDs) being consumed by young Australian, by increasing the tax on alcopops by 70 percent. The Australian dose Foundation; present at the Standing commission on Community Affairs of June 2008, verbalised their concerns to the matter by concluding that some RTDs disguise the reek of alcohol more than than others, making them easy to drink and assembling to young plenty. Placing a tax on these RTDs appears to be an ideal head embark on point for battling small-scale binge drinking, however, the overall success of the shunning should be base on the impact of the raise in tax; depart those wh o cease to drink RTDs simply bleed on to tasteful spirits? The main effort for increasing the tax on RTDs is to simply try to curb the amount being consumed by the young people of Australia. The theory behind the Australian Governments fount move is simple; raising the tax should shift the organize out prune upwards, because of the dismay demand. This is clearly shown on Fig. 1 below. The shift in the supply curve upward go forth lead to a rising equilibrium, with the tax induced higher(prenominal) price and the accompanying lower quantity being consumed. Drug Awareness of New due south Wales state; Australia, verbalize that RTDs are designed to entice underage drinkers who do non like the taste of alcohol to start drinking as the alcohol taste is masked. This indicates that a possible reason for young Australians choosing RTDs as a prefer alcoholic beverage being that they... If you want to get a full essay, enac t it on our website: BestEssayCheap.com

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