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

Kira E. avatar
Answered by Kira E. Economics tutor

2087 Views

See similar Economics A Level tutors
Cookie Preferences