6. One rationale for imposing taxes on alcohol con- sumption is that people who drink alcohol impose negative spillovers on the rest of society- for example, through loud and unruly behavior or...

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Extracted text: 6. One rationale for imposing taxes on alcohol con- sumption is that people who drink alcohol impose negative spillovers on the rest of society- for example, through loud and unruly behavior or intoxicated driving. If this rationale is correct, in the absence of governmental taxation, will people tend to consume too much, too little, or the right amount of alcohol?