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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 would be expected to lower alcohol consumption and its adverse consequences. Studies have mention such a relationship found that alcohol prices were one factor influencing alcohol consumption among youth and young adults, also they 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. Generally one can conclude that increases in the prices of alcoholic beverages lead to reductions in drinking and heavy drinking as well as in the consequences of alcohol use and abuse, and according to this conclusion concurs with a fundamental law of economics called the downward sloping demand curve, which states that as the price of a product rises, the quantity demanded of that product falls.
Economic studies of alcohol demand focus mainly on the effects of price on alcohol consumption. To describe the sensitivity of consumption to changes in monetary price, economists frequently refer to the price elasticity of demand. For example, a price elasticity of alcohol demand of -0.5 means that a 1-percent increase in price would reduce alcohol consumption by 0.5 percent.According to professor Liam Donaldson proposals about increasing price in alcohol, this it might have effect in reducing the quantity demanded but what is included about the one who are addicted to alcohol what should do to them with poor economic situation, this is very difficult and if we see it from business corner we have to assume that it would have a marginal effect on harmful drinkers but force hard-working families to pay more for a drink. While the healthy proposals received from chief Donaldson because of the statistics and researches that Sheffield University has done for my opinion was very initiative, but on the other hand one can say that there are Conservative people who accuse the Government about Labour confusion and incoherence.