In real terms the price of alcohol has been gradually falling, but to what extent might this have been a factor in rising levels of binge drinking in the UK? The link below is to an extract from the BBC Radio 4 Today Programme and will require real player installed on your computer to listen to it.
The price of alcohol and binge drinking BBC Today Programme(January 2008)
- What are principal determinants of demand for alcohol?
- Assess the relative importance of price against the other determinants of demand for alcohol.
- What are the principal factors that determine the price elasticity of demand for alcohol? Assess the extent to which an increase in the price of alcohol will lead to a fall in spending on alcohol.
- How effective would a rise in the tax on alcohol be in raising revenue for the government?