Problem
Assume that the demand curve for hard liquor is highly inelastic and the supply curve for hard liquor is highly elastic. If the tastes of the drinking public shift away from hard liquor, will the effect be larger on price or on quantity? If the federal government decides to impose a tax on manufacturers of hard liquor, will the effect be larger on price or on quantity? What is the effect of an advertising program that succeeds in discouraging people from drinking? Draw diagrams to illustrate each of your answers.
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.