The most fundamental law of economics links the price of a product to the demand for that product. Accordingly, increases in the monetary price of alcohol (i.e., through tax increases) would be expected to lower alcohol consumption and its adverse consequences. Studies investigating such a relationship found that alcohol prices were one factor influencing alcohol consumption among youth and young adults. Other studies determined that increases in the total price of alcohol can reduce drinking and driving and its consequences among all age groups; lower the frequency of diseases, injuries, and deaths related to alcohol use and abuse; and reduce alcohol-related violence and other crime. KEY WORDS: alcohol or other drug (AOD) price; economic theory of AOD use (AODU); elasticity of demand; underage drinking; minimum drinking age; drinking and driving; AOD related (AODR) accident mortality; AOD availability; AODR injury; AODR crime; AODR violence; sales and excise tax
Higher beer excise taxes significantly reduced both the frequency of youth drinking and the probability of heavy drinking
