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Some argue that the laws of supply and demand indicate that taxes on alcohol are ineffective in reducing drinking. In particular, they believe that taxes
Some argue that the laws of supply and demand indicate that taxes on alcohol are ineffective in reducing drinking. In particular, they believe that taxes will raise alcohol prices, but this will reduce the demand for alcohol, pushing the equilibrium price back down to its original level. Since the equilibrium price will remain unchanged, alcohol consumption will be as it was prior to the tax. Explain why this reasoning is flawed
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