Principles of Economics Essay Example | Topics and Well Written Essays - 1000 words - 2

Principles of Economics - Essay ExampleThere be economics variables and principals of solving the paradox of alcoholic beverage abuse. First, by increasing the prices of alcohol, the authority will require that the goods will not be slow affordable, and it would require people to stop in order to afford it. The government would be required to pull together taxation on a product that is used in fermentation or to increase the tax of finished products. Increase in tax will force producers raise the prices of alcohol. Lastly, economist suggests that by qualifying the place and time used in taking alcohol hind end minimize the strips of alcohol abuse. politics in many countries have passed legislation that increases the time costs used in taking beverages. higher(prenominal) costs licences are levied to those that require more time to develop their businesses and also restricting certain sweep by increasing the cost of doing business (Cook, 2002). Alcohol abuse can also be ra tionalize through packaging. The government through legislation can control the least amount of alcohol that can be packaged in a container. The aim of control is to minimize the affordability of beverages. Large amount of alcohol would be more expensive than when packaged in smaller packets (Cook, 2002). Question 2 Prescription drugs are those drugs that require a prescription from a impact before one can use them. This business has affected the free flow of drugs, therefore, affects the supply and use up of other goods. Prescriptions drugs are taken with other goods. Example, doctors impose drugs and encourage meals that increase the health of patients to help them recover from their ailments. Therefore, prescription drugs complement other product manage food, fruits and beverages. Increased use of prescribed medication increases the demand for food, fruit and beverages and reduction of the same reduced the consider of food, fruits and beverages (Anderton, 1977). Prescriptio n drugs reposition the demand and supply of other drugs. Patient who would rather buy drugs over the reproduction do not do so when they seek medication from doctors. Therefore, increase in prescription drugs reduces the render of other drugs in the market. Prescription drugs increases the demand for medical service. Specialized medical doctors earn a helping when more patients seek their services. As more and more cases that need patient to seek medical attention, the demand for those services increases. However, decrease in the supply of prescription drugs has a negative impact on doctors services. Question 3 cinch is the sensitivity of supply and demand to changes in the affecting operators. Elasticity can also be defined as the degree of variation of demand when price change or the amount of change in supply when price changes. Elasticity is a key factor to consider when there is a mistake in supply because it determines the degree of a change in the quantity supplied. El astic demand curve has little effect when there is a shift in the supply curve. Inelastic demand curve has a large magnitude on the shift in the supply curve (Stonebraker, 2013). On the other hand, elasticity of supply is a factor to consider in the shift of the demand curve because it elasticity help determine the extent of the quantity demanded in a given time. A shift in the supply curve when is less when the demand curve is comparatively elastic. Inelastic demand curve has a significant change in the quantity demanded in case of a shift in demand curve. The principal of elasticity of demand and supply in the shift of