Suppose the market for beer is a perfectly competitive market in long-run equilibrium.

In order to reduce alcohol consumption, the government decides to implement a tax on beer.

Show (and argue for) what happens to the beer market, and representative beer-producing firms, in (a) the short run, and (b) the long run.

[Hint: Your analysis should include discussions of price, market quantity, firm quantity, and profit.Graphs are absolutely essential.]