UNDERSTANDING MARKET EQUILIBRIUM During the 1920s and into the 1930s, the U.S. government experimented with Prohibition. The Eighteenth Amendment to the Constitution, which was ratified in 1919, made the manufacture, sale, and transportation of alcoholic beverages illegal in the United States. For various social, political, and legal reasons, the experiment failed Prohibition ended in 1933 with the ratification of the Twenty-First Amendment. Explore the economic aspects of Prohibition by answering all of the questions below. 1.a. Diagram A below represents the market for alcoholic beverages in the United States in 1919. It is now 1921. What initial changes in the market for alcoholic beverages would the Eighteenth Amendment have caused? Why? 1. b. Draw a new supply curve to illustrate your answer. Label it $1 (1921) S (1919) DIAGRAM A Price O Quantity 2. a. What happened to the equilibrium point for alcoholic beverages? Why