Anwar Hussain (ID No. 000718551-0)
(BA) Business Economics
Economics 1006, Introduction to Economics For Business
Coursework Header Sheet
ECON1006: Intro to Economics for Busines
Coursework is receipted on the understanding that it is the student's own work and that it has not, in whole or part, been presented elsewhere for assessment. Where material has been used from other sources it has been properly acknowledged in accordance with the University's Regulations regarding Cheating and Plagiarism.
For Office Use Only__________
Moderation required: yes/no
Supply and demand
The UK government has recently introduced a minimum price scheme for alcohol. Discuss the likely economic effects using correctly labelled supply and demand diagrams to explain and illustrate your answer.
The alcohol industry has revived strongly in many countries around the world in recent years including the UK and other European countries.
Although Alcohol profits in other countries remain on average far below western European levels, they have been catching up rapidly, with sustained real annual increases in the double-digit range not uncommon. Alcohol minimum pricing is a new policy where there is a minimum price set for a specific unit of alcohol, below which it cannot be sold. By introducing a minimum price per unit of alcohol, drinks with a high number of units which are currently being sold at low prices, they will see the greatest change in price. A lot of frequent questions will be raised are to why there a legislation to introduce a minimum unit price is been passed. Firstly Minimum pricing is being taken forward as a legislation as part of a wider framework to rebalance the UK's relationship with alcohol. The...