B) With all the wealth made by the modern day robin hoods, many Americans started to change their view on prohibition, as they saw how much the economy and society suffered without the legalization of alcohol. III Main Point 2 The Great Depression was solitified with the decrease of income from the taxation of alcohol. The country relies on every tax it creates and once the country starts to reduce taxes, the economy faces a domino effect financially. • The beginning of the Great Depression In the late 1920’s caused a huge change in American opinion about Prohibition. • The Economy’s issues had crippled the country financially; legalizing Alcohol could provide some relief as a taxable product as it once was.
The government is significantly influential because if interest rates, VAT and inflation rates were to increase it will mean the consumers disposable income in the UK decreases. This is because, the cost of living will increase and more tax will be paid for each purchase. As a result, consumption will decrease. This leads to a decrease in aggregate demand as consumption makes up approximately 60% of AD. Consequently, consumer confidence will fall which means that a smaller amount of purchases will occur.
To begin with, raising the tax will bring in more money to the government from since demand is inelastic for cigarettes and people will keep on buying them. The extra amount of income could be used to help the well being of the country and to provide more public goods. Also, cigarettes are a demerit good, a good which is considered unhealthy or damaging in some and can be physically harmful to the consumer and other surrounding, so when price increases, demand will fall. Even if it is a small fall in demand, it is most likely to be for the young smokers to demand since they have less income than adults. If more young smokers quit, the healthier the next generations will be since smoking is a main reason behind a lot of health issues including lung
This measures the risk of investing in a company. In other words, the decline in margin of safety shows that the difference between sales completed and sales needed to break even getting smaller. These changes can be attributed to their total sales amounting to a value less than the breakeven point in sales. 2) If average prices were reduced 10%, and sales tickets were increased to 14,000 the income of the company would increase. However, even with this change in values, the company is still under its breakeven point.
The state of the economy also greatly affects the sales as in 2008 there was a decline in sales when the market dropped. The sale also rely on good weather and in certain months of the year, so in high temperatures or in the summer more people will drink juices and will consequently buy more drinks. Sales also depend on the status or popularity of the item, as younger
The main issue for and against the restriction of the sale of gin during the 18th century in England were economical issues, rather moral and health issues because the peoples nature to make profits. In 18th century England, there was numerous economics concerns against the restriction of the sale of gin, but there were also very few for the restriction of gin. Some would have a non bias view and both views on the restriction of gin. The graph portrays the change in Beer and Gin production in the 18th century, with the sale of beer steady in history while the sales of gin increased dramatically. (Doc.1) If gin were to be restricted, the sale, production, and profit of beer would greatly increase.
More liquor will be sold to the patrons, which will increase the amount of money the government can make. An alternative policy is to legalize drinking but drive up the monetary price though new taxes. As long as young adults' alcohol demand is at least somewhat responsive to price, taxation can reduce consumption by as much as the current legal drinking age of twenty-one does. (Donald Kenkel, Acess my Library,3) If eighteen year olds do not have legal access to even a beer in a public place, they are ill equipped to deal with the responsibilities that come with drinking when they do have the right. Local business will also do better by being able to sell alcohol to more people as well.
In the US, tobacco is the single most remunerative business in existence. Large tobacco industries as well as smaller businesses would be affected by the ban, and farmers of the plant would find themselves at loss of jobs. Unemployment is already a major issue in today’s society, and this ban would cause its rates to rocket. Tobacco is also a prominent player in the trade industry; countries such as LEDCs that rely on its trade (amongst that of other products) for their economy would find themselves at great loss. However, it could be argued that since tobacco lowers life expectancy and causes diseases, tobacco costs considerably more than it should to the taxpayer.
Take gasoline for examples as the price goes up people tend to drive less. These laws of supply and demand also affect business decisions; if wages go up employers will hire less people as this increase in average fixed cost would eat into their marginal revenue. Economists estimate that for every 10% increase in wages workforces are cut by 3% (Danzinger 2009) Minimum Wage Merrell
This would be good for Tesco if they wish to expand at present. If interest rates are low then Tesco will be willing to borrow as they feel that they can afford their repayments. This will increase demand for goods and services within their business and help economic growth. Government support – The Government provides us with new road networks, rail and