Why is it so difficult for many politicians to grasp the concept of elasticity? In London, some politicians believe that putting a minimum on the price of alcohol will lead to a reduction in the consumption of alcohol:
Sir Liam estimated that the pricing minimums would save more than 3,000 lives and result in 100,000 fewer hospital admissions per year.
The reality, which should be very clear with just a bit of intuition and common sense, is that consumers of alcohol do not adjust drinking down or up based on price. I don't believe it is completely inelastic, but nominal price floors and ceilings will only shift demand within those floors and ceilings.