ACCT 210 Lecture 29:
6 Sep 2020
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Babor, t. (2003) chapter 6 - case 7. Regulation of alcohol taxes and prices, popular because they are: Economic studies conducted in many developed and some developing regions of the world have demonstrated that increased alcoholic beverage taxes and prices are related to reductions in alcohol use and related problems. Aims and mechanisms of formal controls over beverage prices. In the absence of any formal controls ove rproduction, distribution, and sales, the price of an alcoholic beverage would be set by market conditions purely on the basis of its supply and demand. However, most countries, increase alcoholic beverage retail prices over their production and distribution costs and control profit through special alcohol taxes or other price controls. In many market economies, the share of alcohol taxes in state budgets has also declined because of decreases in alcohol tax rates. However, alcohol tax revenues are still of considerable fiscal significance in many developed countries.
