Technological innovations and demands for pharmaceuticals

Question

Pharmaceutical companies have currently developed and tested drugs which reverse the affects of alcohol upon the brain only in a half hour. Such pills allow drivers to sober up before driving and to decrease the severity of hangovers. Within the past few years, various states have imposed stiff mandatory penalties for drunken driving confidences. How do you believe these two separate events will interact to affect alcohol consumption?

Answer 1

Alone, the pill raises the demand for alcohol, when stricter DUI as well as DWI laws and stiff enforcement reduce demand; the net consequence on alcohol consumption depends upon the relative magnitudes of such opposing shifts.