The Impact of Alcohol Abuse on Finance and Economy

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Introduction Alcohol abuse and its associated problems cost society many billions of dollars every year. Economics have attempted to calculate the monetary damage that has resulted from the alcohol abuse. These damages include expenditures on alcohol-related problems and opportunities that are lost because of alcohol. Two problems are particularly directly related to the case of alcohol abuse. First, researchers attempt to identify costs that are directly related to alcohol abuse. Second, many costs resulting from alcohol abuse cannot be measured directly. Researchers use mathematical and statistical methods to guess such costs, yet recognize that it is difficult to calculate them exactly. Moreover, costs of pain and suffering of both people who abuse alcohol and people suffered by them cannot be estimated in any authentic way, and are therefore not considered in most case studies. Elements of economics ways of thinking In this paragraph, we would present a model for analyzing and addressing the problem of alcohol abuse by taking the assumptions of ceteris paribus (other factors remains unchanged) We would take the assumption that if we increase the price of alcohol, the purchasing of alcohol would decrease, ceteris paribus (means other factors do not change like income of the consumers, or price of other substitute products). People would respond to the price hike of alcohol and would like to shift to other substitute products. If the people have to choose between
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