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24
Aug

BEA683 Economics for Managers: Group Assignment

Total Marks:                 20 marks Weight:                        15% of final marks Length:                        up to 1400 words Minimum price on alcohol Governments in Australia and around the world are considering implementing a minimum price (aka price floor) on alcohol. Your task is to use the Economic way of thinking learnt in class to formally explain the effect of the minimum price. You will need to consider the external effects (negative externalities) of alcohol consumption, the price elasticity of demand, and taxation (an alternative way of reducing alcohol production/consumption). To simplify analysis, please assume that alcohol is a single homogenous good. That is, do…

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