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Economic Way of Thinking

In: Business and Management

Submitted By stacywhite2003
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Economic Way of Thinking

Economic Way of Thinking
SW
Economics 100 Professor E 11-06-2012 Abstract
In this paper, I am going to review an economist approach to alcohol abuse and include the 4 elements of the economic way of thinking. I will be discussing supply and demand and how it affects prescription drugs and also how it is an important. I will be discussing increasing-cost industries as well as reviewing a perfectively competitive market. Impact of Economics An economics perspective of alcohol abuse would be that, even with significant harm is caused; they feel it should not be restricted. Economics assume that people, usually, are the best judges of themselves. Economist have also come to the conclusion that consumers tend to drink less alcohol, and have fewer alcohol-related problems, when alcoholic beverage prices are increased or alcohol availability is restricted. A possible solution to the alcohol abuse problem could be limiting which stores are able to sell the alcohol products. It is very easy to obtain alcohol and if it was not as easy to access, the sales would go down, causing the number of alcoholics to decrease. Another possible solution to alcohol abuse could be to enforce tougher penalties for alcohol related crimes and or alcohol related traffic violations. By doing this, the consumer might realize that the crime might not always be worth the time.

Prescription drugs affect the supply and demand of other products and services in this country by the demand for over the counter drugs decreasing as the demand for prescription drugs goes up. More people are visiting physicians as opposed to self-diagnosing and almost expect to receive a prescription when they leave. With this

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