Question

Explain the effects of the state government's proposal to impose a per unit tax on alcoholic beverages in an attempt to reduce alcohol consumption by students.

Answer 1

The effects of a per unit tax on alcoholic beverages include increased prices, reduced consumption, and potential impact on other purchases.

Step-by-step explanation:

The effects of a state government's proposal to impose a per unit tax on alcoholic beverages in an attempt to reduce alcohol consumption by students would include:

1. Increase in alcohol prices: The tax would lead to a higher price for alcoholic beverages, which would make them less affordable for students.
2. Reduction in alcohol consumption: Due to the higher prices, students would likely consume less alcohol as it becomes less accessible.
3. Impact on other purchases: Higher alcohol prices might cause students to cut back on other expenses, such as snacks or entertainment, to afford the increased cost of alcohol.