1. Higher consumption of alcohol leads to more motor vehicle accidents and, thus, imposes costs on people who do not drink and drive.

a. Illustrate the market for alcohol, labelling the demand curve, the social-value curve, the supply curve, the social-cost curve, the market equilibrium level of output, and the efficient level of output.

b. On your graph, shade the area corresponding to the deadweight loss of the market equilibrium

Can you help explain the concept of social cost curve and social value curve.