Research Essay Task
Your task should be structured as follows:
1.Part A: Setting the scene. An overview of the scale, growth and social costs of the obesity epidemic in Australia, and the contribution of sugar-sweetened beverages (SSBs) to these problems.
2.Part B: An analysis of the effect of social costs arising from SSBs on the economically efficient equilibrium of the market. The analysis should be framed around a model (diagram) of the economic theory of externalities and as a minimum, should clearly identify the theoretical market equilibrium and efficient equilibrium and any deadweight loss.
3.Part C: An analysis of policies to reduce the social costs arising from SSBs (shifting the market from the current market equilibrium towards an economic efficient equilibrium. This is to be limited to consideration of:
a.A tax on the consumption of SSBs
b.A non-price policy or innovation that can be implemented to reduce the social costs associated with SSBs.
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