Explain and analyze the effects on economic efficiency and the impacts on firms and on consumers, of

• (i) a price ceiling, and
• (ii) an excise tax on a product.

Your answer must include relevant economic models (graphs) and real-world examples.

1 Introduction

• A brief outline of what the report will be covering (thesis statement) and some context regarding the issues.

2 Explain the concept of economic efficiency

• Explain the concept of economic efficiency.
• Be specific about how government intervention in the form of implementing a price ceiling or an excise tax, impacts economic efficiency.

3 Specific details and diagram/s related to this topic and Real-world application

(i) Price Ceiling: theory and effects with reference to a real-life example.

• Clearly label your graphs.
• Explain your graphs by referring to specific points on the graphs.
• Define relevant terms.
• Real-world examples can either be Australian examples or from other countries.

(ii) Excise Tax:theory and effects with reference to a real-life example.

• Clearly label your graphs.
• Explain your graphs by referring to specific points on the graphs.
• Define relevant terms.
• Real-world examples can either be Australian examples or from other countries.