introduction to business economics Assignments | Essay Help Services

1. Concerned about the high consumption of alcohol, in May 2018 Scotland became the first country to implement a minimum price per unit of Alcohol. Similarly, concerned about the high prices of rents in the UK, Jeremy Corbyn’s speech, at the labour conference in 2017, highlighted the importance of imposing rent control. Illustrate what are the names of the policies mentioned above. With the aid of the Demand and Supply model, explain the impact of these price interventions on the market for alcohol and houses.

(Hints: Make sure your diagrams reveal the excess demand or supply that might result out of these policies and ensure that you address the distortions that these policies might cause on the market for alcohol and houses; Clarify, with the aid of graphs, what would happen to consumer and producer surplus, when the following strategies are imposed.)

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