1. Read the abstract of the following paper:

https://pubmed.ncbi.nlm.nih.gov/19149811/

Based on these data, please

1. Explain whether the demands for alcohol beverages are elastic or inelastic? Specifically, if prices increased by 10%, what would happen to the sales of beer, wine, and spirits? (10 points)
2. If the federal government impose a specific excise tax on all alcohol beverages (beer, wine, spirits), who will likely bear the burden of a larger proportion of the tax, consumers or producers? why? Explain whether this tax will reduce total social welfare (the sum of consumer and producer surplus)? (10 points)
3. After imposing this tax, what would happen to the sale of cigarettes? (10 points)