Discuss the effect of the tax policy on consumers and producers of a product of your choice.

Description PLEASE READ CAREFULLY AND LOOK AT THE ASSIGNMENT PROPERLY. 1. Food taxes intended to shift consumption towards a healthier diet are controversial. a) Use appropriate diagram(s) and examples to clearly explain how the government might use tax policy to reduce consumption of unhealthy food item. b) Discuss the effect of the tax policy on consumers and producers of a product of your choice. c) In your own words, provide arguments for or against food taxes designed to encourage healthy eating. 2. Using the model of scarcity and choice to: a) Illustrate and explain clearly how a student will choose between hours of study and free time. llustrate and clearly explain how improvement in study effectiveness might affect the choices in (a) above. Comment on other factors outside the model which might be important in determining such a choice two questions each question needs to be 1000 words give or take 10% Assessment CRITERIA: 1. Use of appropriate microeconomic concepts/theory, including technical clarity of explanations 2. Applicability, appropriate use of diagrams, clarity and precision of diagrams and explanations 3. Use of appropriate and relevant examples to show links from theory to real world outcomes to people and or firms 4. Narrative, Clarity, including flow and direction: have you answered the set question? The text of your assessment must be displayed using a 12-point (or larger) Arial or Verdana font and with a line spacing of at least 1.5. This is a technical essay. The assessor is looking for clear, insightful microeconomics analysis. • Use appropriate models and diagrams and make sure the models are clearly explained and the diagrams are drawn carefully and correctly labelled (axes, points, curves, etc.)