Case Study The Market Failure Of Alcohol - 1303 Words

Ashley Alaniz ECON 2302 Armstrong 3 May 2016 CASE STUDY: The Market Failure Analyzation of Alcohol DEMANDERS Alcohol is one of the most popular forms of socializing in America. On average about 66% of Americans say they consume alcohol and with most drinkers admitting to consuming just over four alcoholic drinks per week. According to the Beverage Marketing Corporation, in 2014, alcoholic beverages such as beer, wine, and spirits, make up about 20% of the US beverage market. Beer continues to be Americans favored drink, with wine being second, and liquor being another beloved form of alcohol. The American Beverage Licensees, also known as the ABL is the national association for services such as bars, taverns, pubs, and liquor stores. In an economic study, the ABL estimated that the economic impact of the alcoholic beverage industry in 2014 was more than $245 billion. However, for the past several years the demand for the alcohol market has gradually been declining because consumers are now becoming more health conscientious and choosing better alternatives to drink. Beer has long been the major alcoholic beverage preference compared to wine and distilled spirits and liquor. However, in recent years, beer has been losing its market share to wine and spirits. According to the Market Realist, this trend has negatively impacted beer producers such as Anheuser-Busch and MillerCoors. With liquor being an extremley popular market, companies such as Diageo, Brown-Forman,Show MoreRelated Prohobition Essays1189 Words   |  5 Pagesactually caused. One of the main goals, obviously as it was implied by the name, was to eliminate alcohol from the American social scene. Not, however, that it was illegal to consume alcohol. In fact, it was only the manufacturing and sale of alcohol that was illegal. 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If there is no demand for the product, then there will likely be a smaller supply. If the item is rare and there is a high demand, then the product will be expensive. One political and economic idea about reducing alcohol abuse is to target the youth market where alcohol is prevalent, if illegal. The youth market, that is 14-17 years of age, are more likely to be more affectedRead More Drugs and Alcohol Essay1599 Words   |  7 PagesAlthough there is risk involved with the legalization of the marijuana, our country has already been risking too much banning the drug. As a result, many police officers and Americ an citizens lives are at risk as task force attempt to control the black market. It has limited the treatment possibilities of the ill as marijuana can be prescribed for various sicknesses (Fisher, par. 1). The benefits of legalizing marijuana by far out way the losses of continuing to keep it illegal. There are flaws on bothRead MoreAlcohol And Drugs And Their Effects On First Year Students1544 Words   |  7 PagesAlcohol and Drugs and their Effects on First-Year Students Alcohol has been a part of human society for millennia. It can be found in churches, gas stations, supermarkets, and nearly everywhere else. Drugs are becoming more ubiquitous as well, with the legalization of cannabis now active in some form in 25 states (Maciag â€Å"State†). However, no single place is more saturated with alcohol and drugs than the college campus. Despite the troves of research that have been done to give evidence that theyRead MoreThe Boston Beer Company1497 Words   |  6 PagesRSM 332 Marketing Research Fall 2011 Thursday 1:00 pm - 3:00 pm WO 20 Professor: Mengze Shi Project: The Boston Beer Company case Chernenko Kirill 998581510 The Boston Beer Company, Inc., founded in 1984, is a leading brewer in United States, offering wide variety of high quality full-flavored, handcraftedbeers. It is distinctive due to the time-honored recipe of brewing and authentic, consistent quality of alcoholic beverages. Samuel Adams Boston Lager is the pride of BBC,Read MoreShould Marijuana Be Legalized?1200 Words   |  5 Pagesmore conventional medicines in the case of multiple sclerosis patients, and it has been proven to be very useful and effective. Also, the drug is known to help those undergoing chemotherapy treatment. This essential cancer therapy damages patient s bodies and causes extreme vomiting, weakness, and weakened immune systems. On the other hand, some people who argue that cannabis should not be legalized argue that cannabis is more lethal to the human body than alcohol, which is legal. This is demonstrably