An Economist's Approach to Alcohol Abuse

Write a journal entry on the basis of the following topic. Your entry should be approximately 150-200 words.

In the United States, we encounter quite a bit of obstacles that we can’t seem to get rid of completely. We as a nation deal with inflation, unemployment, stagflation, recessions, depressions, and so much more. Reading these three articles opened my eyes to the world of economics, and even made me question the society we live in. I’ve learned that sometimes questions can’t be answered, and I learned that once we solve one issue, there is always another issue on its way. These articles made me analyze, and think about the future of economics, and what I can do to try and help the economy. These authors of these three articles make it very clear that there are issues in the United States, and they do an amazing job

Law of Demand: Downward slope, and inverse relation of price and quantity demand. When price of oranges goes up, the quantity demand will decrease, because of higher price, and substitutes.

Shortages of prescription drugs in the United States are a serious threat to our nation’s health and safety. At first blush, this problem appears fairly simple and straight forward to solve. In reality, there is a complex web of causation with a number of root causes contributing to drug shortages. The aim of this paper is to answer the question: How do we mitigate prescription drug shortages? This discussion is written from the standpoint of advising the current presidential administration how to address this crisis. This essay begins with a discussion regarding the background of the issue. Next, the landscape, including stakeholders in this matter is identified. Following, political, social, economic, and practical factors surrounding

Supply and demand lies in the heart and soul of economics. The concept is perhaps the single most driving force in an economy, specifically a capitalist economy. Supply and demand is based on two concepts: The law of demand and the law of supply. The law of demand states that the demand of a product rises as its price falls, therefore the demand of a product falls as its price rises. A good example of this occurs in grocery stores. If the price of a case of Coca-cola drops from $6.99 to $2.99 the demand for the product will rise because more people are willing to pay $2.99 rather than $6.99. Not only will typical consumer of Coca-cola purchase more but consumers who are not normally willing to pay $6.99 will make the purchase. Substitution also plays a role in the equation. Substitution occurs when consumers substitute one good for another based on price levels. In the Coca-cola scenario, some Pepsi drinkers will purchase the Coca-cola given the case of Pepsi is price higher.

In recent years, prescription drugs spending has been one of the most rapid rising components in the healthcare industry. In 2008, prescription drugs spending

Supply and demand is a fundamental element of economics; it is the main support system of a market economy. Demand can be interpreted by the quantity of a product or service a consumer is desired to acquire at a given time period. Quantity demanded is the amount of product consumers are willing to purchase at a given price; the relationship between price and quantity demanded is commonly known as the demand relationship. Supply however, accounts for how much a market produces for consumers. The quantity supplied refers to the actual amount of a certain good firms are willing to supply to consumers when receiving a certain price. Having limited resources we all have to

What is the Law of Supply and Demand? Explain how increases and decreases in supply and demand affect prices.

Suggest how an economist would approach the problem of alcohol abuse. Provide two (2) possible solutions to this problem. Include the four (4) elements of the economic way of thinking in your analysis

The market price of a good is determined by both the supply and demand for it. In the world today supply and demand is perhaps one of the most fundamental principles that exists for economics and the backbone of a market economy. Supply is represented by how much the market can offer. The quantity supplied refers to the amount of a certain good that producers are willing to supply for a certain demand price. What determines this interconnection is how much of a good or service is supplied to the market or otherwise known as the supply relationship or supply schedule which is graphically represented by the supply curve. In demand the schedule is depicted graphically as the demand curve which represents the

Specifically the health care sector and the pharmaceutical environment are directly linked by their interactions in their quest to addressing the health requirements of the nation. Furthermore, the transformation of the Pharmaceutical Industry due to Congressional Reform will continue to impact both the economic sector and health care policy. Subsequently, one of the principle elements associated with the rising cost of health care expenditure can be directly connected to the influence and dominance of the Pharmaceutical Industry. Therefore, to what extent does the influence and dominance of PhRMA, or the Pharmaceutical Research and Manufacturers of America, and the Pharmaceutical Industry impact the rising cost of health care?

Supply and demand regulate the amount of each good produced and the price at which it is sold. It is the conduct of individuals as they work together with one another in aggressive markets. “A market is a group of buyers and sellers of a particular good or service. The buyers, as a group, determine the demand for the product, and the sellers, as a group,

In addition to the law of demand, the law of supply also serves as the second major resource in studying economics. The law of supply states that with other factors remaining constant, as the price rises, the quantity of the product supplied also rises. Conversely, as the price falls, quantity of the product supplied also falls (Colander, 2006, p 97). The law of supply is refers to how producers can effectively substitute the production of one product for another (Colander, 2006, p.

Alcohol is the most widely used drug in the world, because of its accessibility. The term alcohol refers to the primary alcohol ethanol. In 2015 about 89% of adults in the United States stated that they had consumed alcohol at some point in their lives. Alcohol is a demerit good, because it can have negative effects on the consumer. The effects of alcohol consumption can also impact other people and those spill over effects are called negative externalities. Negative externalities cause market failure, because an individual’s incentive for a certain behavior does not lead to rational outcomes for society.

Just like other standard demand and supply diagram(Figure1), an unregulated market of whiskey leads to equilibrium price(P1) and quantity(Q1) at the intersection of the marginal private cost (MPC) curve and the demand curve (Weidenbaum L. 2004). However, consumption of whiskey generates some external effects such as adverse health effects, reduced productivity, increased crime and violence, road traffic accidents and premature death(Doran C &Jainullabudeen T. 2012). There is a