To deal with such cases, government can increase the indirect taxation by implementing high tax rates on the producers of alcohol. In majority cases, the producers or the manufacture transfer the burden of taxation to the end customer and keep themselves free from it. The increment in the tax rates will lead to the increased potential expenses of the alcohol producers industries.
The economic lessons of alcohol demand emphasis primarily on the price changes on alcohol intake. Economists regularly mention to the price elasticity of demand to define the sensitivity of consumption to variations in economic price. Therefore, rise in the fiscal price of alcohol by increasing the tax would become the reason to lesser alcohol drinking and its cruel consequences. Research says that alcohol costs are one major factor inducing alcohol intake between youth and the grownups. Further studies concludes that increment in the entire price of alcohol can bring a great possibility in decline of drink and drive cases and its other penalties among all age groups ( Chaloupka Grossman & Saffer, n.d).
The alcohol producing companies should be directed by the government to increase the rates of the alcoholic drinks so that the excessive burden of the expenditures on alcohol producers can be balanced with the end purchaser. As the demand is the sum of the interest of the customers and the purchasing authority of the customers. If the customers have their interest in the alcohol but the increased rates will make it beyond their affordability and hence they have to lower their consumption. The increased rate of alcohol will definitely be a major reason in lower consumption in youth due to their less affordability.
Australian framework should contain a minimum legal age for alcohol consumption to 21 like in many other countries and strict laws should be implemented against its violation (Medew, 2014).