Why does excessive consumption of alcohol lead to negative externalities ?

The private consumer does not consider the effect that their excessive alcohol consumption has on a third party and so the private benefit outweighs the social benefit. There is a welfare loss to society from the over consumption and over valuing of alcohol above the socially optimal level. Insert negative externality of consumption diagram

KE
Answered by Kira E. Economics tutor

2674 Views

See similar Economics A Level tutors

Related Economics A Level answers

All answers ▸

What is opportunity cost?


How do I provide a good evaluation point for something I agree with?


Explain, using examples, what is meant by the circular flow of income.


Explain what is meant when it is said that there are inefficiencies in the production of goods and the allocation of resources.


We're here to help

contact us iconContact ustelephone icon+44 (0) 203 773 6020
Facebook logoInstagram logoLinkedIn logo

MyTutor is part of the IXL family of brands:

© 2026 by IXL Learning