Economics

The Economist on alcohol abuse

Answer 1)

For economist the human beings are rational agents and solution to this problem of alcohol abuse is entirely connected with the cost and benefit. This cost and benefit either increase costs or decreases the benefit. Now, this cost and benefit is also concern with the easily accessibility of drugs, social acceptance along in term of money.

The two solutions for this problem from economist point of view are through enhancement in the cost of drug. This can be obtained through increase in tax and reduction in the availability of the major drug that are more connected to alcohol abuse (Marshall A., 2012).

From economist way of thinking, the following are the elements:

Increase in Cost:

Greater tax on Alcohol

Prohibit drug consumption in public places

Laws on the purchase of alcohol and

Treatment cost should be reduced:

Subsidies of Government on AA firms and social workers,

Availability of treatment and awareness through the assistance of advertising and other campaign

The reduction in the benefit is tough job due to social acceptance i.e. drinking among teenager which can be changed through the education programs. This would for those that believe and consider that drinking is viewed as cool and acceptable in the society. As serious addition can be consider as out of economy monarchy and take place in the monarchy neuroscientist and psychologist. This compulsion rewires the person neurons and the concept of rational agent barely enforces here.

Answer 2)

The drug prescription has a direct relationship with the overall drugs counter. When supply of the drug prescription is more toward the consumer than the demand would fall off over the counter drugs due to the fix nature which experienced by the prescription drugs. Furthermore, the decrease in supply of prescription towards the consumers will ultimately increase the demand for the counter drug.

Furthermore, the prices of recommended drugs are high and hence people turn to herbal remedies. The complementary products demands are not self sufficient from each other. This can be viewed as the expensive recommended drugs demands will reduce when same ingredients of herbal remedy are available in the market. These prices are feedback which can affect the demand at large. If the prescription drugs tends to become more expensive than the herbal remedy due to increase in the FDA standards than the demand would increase for herbal remedies.

The level at which the herbal remedy might proves to be as an effective as the prescribed counterpart, the usage of herbal remedy will increase.

If doctors recommending on the prescribed products and no other drugs can cure the disease than the demand for further unessential miscellaneous goods are useless.

Answer 3)

The reason for the elasticity of demand is an important consideration when analyzing the impact of a shift in supply, is due to the incidence of tax which is change the base of both the supply and demand elasticity. As we know that the elasticity of demand, also known as the price elasticity of demand is a concept in economics which is ...