In an effort to deter alcohol consumption by youths,raising the legal age for alcohol consumption causes a _____ the demand curve for alcohol,while raising the federal per unit tax on alcohol would cause a _____ the demand curve.

Question

Quizplus · Accepted Answer

Raising the legal age for alcohol consumption would cause a leftward shift of the demand curve for alcohol, as it would decrease the number of people legally able to purchase and consume alcohol.

On the other hand, raising the federal per unit tax on alcohol would cause a movement along the demand curve, as it would increase the price of alcohol, but not necessarily decrease the number of people willing and able to purchase it. A rightward shift of the demand curve would indicate an increase in demand, which would not be the case with a per unit tax increase.

In an Effort to Deter Alcohol Consumption by Youths,raising the Legal