What is the minimum price?

What is the maximum price, then?

Definition of a A maximum price is when the government establishes a price limit for a product or service with the goal of lowering prices below the equilibrium market price. A maximum price set lower than the equilibrium price will result in a shortage. The demand will exceed the supply.

What is the minimum price of alcohol? Minimum price for alcohol: The minimum price for alcohol will be 50p per unit. This will increase the cost of lower priced supermarket beers, wines, and beer, but it will not affect pub prices, as most pub drinks go over the 50p threshold.

Why does the government have a minimum price in this instance?

Minimum Prices The government doesn't allow prices below a specific level. Minimum prices that exceed the equilibrium will result in an increase in price. The EU, for example, has used minimum price in agriculture. Farmers' incomes are considered too low.

Is minimum pricing a way to reduce alcohol consumption?

Longitudinal data suggests that an increase of 10% in the minimum price for an alcoholic beverage decreased its consumption by 16.1% relative to other beverages (P 0.01). Conclusions: Increases in the minimum price of alcoholic beverages can significantly reduce alcohol consumption.