a. Draw two models, a monopoly market (price-setters) and a perfectly competitive market (price-takers). On each of your models show the equilibrium point and show any areas of consumer surplus, producer surplus and deadweight loss. Label all relevant axes, points and curves on your model. (6 marks)

b. Discuss how important investment in research and development would be in each type of market structure (monopoly and perfectly competitive). [max words: 150] (2 marks)

c. In 2017 the US city of Philadelphia introduced a 1.5-cents-per-ounce tax on sweetened drinks such as soda and energy drinks. Discuss the likely effectiveness of this tax. [max words: 150] (3 marks)

d. Discuss what, if any, implications the tax on sweetened drinks will have on inequality within the city of Philadelphia. [max words: 250] (4 marks)