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Should The Scottish Government Introduce A MUP For Alcohol In The UK

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Recommended: Supply and demand economy

Introduction
This assignment will aim to focus on a specific issue which affects the economy. The issue being addressed in this assignment is regarding the government who are introducing a MUP for alcohol in the UK, through identifying key areas where economic theory does not adequately describe real world experiences, in order to discuss cases for and against this issue relating to the economy.

Review of theoretical concerns
Supply and demand
Supply and demand is a theoretical concern, “the relation between these two factors determines the price of a commodity. This relationship is thought to be the driving force in a free market, as demand for an item increases, prices rise”. (Supply and demand, 2015).
However, Modern economic theory …show more content…

However, the Scottish Government believe that their “pubs will charge for alcohol above any likely minimum price, so they wouldn't be affected” (Scottish Government, 2015).
Being influenced by the Scottish Government, the UK government strategy (government alcohol strategy, 2012) Prime Minister David Cameron addresses the issue of binge drinking, stating it accounts for half of all alcohol consumed in this country.
The government has an influence upon the supply and demand of alcohol because their price may be below the equilibrium meaning there is a loss in surplus making the market inefficient.
An impact of this sanction means that consumers will decrease as they will consume less alcohol and suppliers will supply less. This will be an advantage as it will decrease the amount of alcohol consumed and will prevent crime/injuries and other alcohol related offences. As opposed to the advantages this may affect the sales within the market will drop. This may push consumers towards counterfeit products containing alcohol that is cheaper, dangerous but more

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