Too much to drink? Tackling the UK’s alcohol problem…


It’s not just taxes that affect prices. The UK has long debated imposing a minumum price for alcohol. The articles below give an excellent overview of the issues in this context.

Consider these questions:

  1. Explain the market failure here. What evidence can you use to support your view?
  2. Can you draw a diagram to represent the market failure?
  3. How would a minimum price work? Draw a diagram to illustrate the theory.
  4. What are the limitations of this method of price intervention?
  5. Are there alternatives or complementary strategies that could be used?

Some further reading:

Guide to Units: