Unit 1: Alcohol abuse and govt action to reduce market failure

These BBC clips outline Scottish proposals to reduce alcohol consumption

http://news.bbc.co.uk/1/hi/uk/7918184.stm
http://news.bbc.co.uk/1/hi/programmes/the_daily_politics/7918975.stm

A summary is in this post from A question of economics

http://aquestionofeconomics.blogspot.com/2009/03/scotland-to-impose-minimum-price-on.html

This BBC post has the proposals from the Chief Medical Officer Of England

http://news.bbc.co.uk/1/hi/uk/7944334.stm article
http://news.bbc.co.uk/1/hi/uk/7944463.stm video

The government response is here

http://news.bbc.co.uk/1/hi/uk/7946351.stm video

a) What evidence is there of market failure?
b) What actions are the Scottish govt/Chief Medical Officer proposing?
c) Using a S&D diagram, discuss the likelyhood of this intervention being successful in reducing the market failure