Other
Price ceiling/floor and Indirect tax essay plans
- Module
- Principles Of Microeconomics
- Institution
- Loughborough University (LU)
Essay structure for a question which is focused on price ceiling/floor or indirect tax government policy
[Show more]
Seller
Follow
Content preview
Effect of Price Ceiling(Floor)Intro:
- Define what is a price ceiling
- Price ceiling is a form of government intervention which is a price control implemented in
order to increase equity
- Example of Price ceiling is rent controls in London; prevent the charging of above a certain
price for rent in order to try and increase affordability of housing
- Example of Price floor is minimum wage; currently is £6.45/hr for 18-20 yr olds and £8.20/hr
for 21-24 yr olds (National Minimum Wage and National Living Wage Rates, 2020)
- Price controls are important for governments to consider using in order to improve equity in
society i.e. attempt to make society fairer.
Main Body:
- Price Ceiling D+S Diagram
- Excess Demand
- Lower Price
- Market doesn’t clear due to the effect of the legal price control
- People may still consume a good or service using black market.
- People may simply import the good/service
Conclusion:
- Summarise the effect of the price ceiling
Effect of Indirect Tax
Intro:
- Define Indirect taxes
- Define the type of tax in question: Ad-valorem/specific tax
Main Body:
- Diagram for the tax
- Price and Quantity changes
- Reason behind shift of curve left and shape of the curve shift
- Incidence of tax
- Variation of Incidence depending on elasticity of supply/demand: resulting difference in
burden of tax: does this affect the purpose for why the tax was used?
Conclusion:
- How effective is the tax at achieving what it aimed to?
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller vibhavpandey. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for £2.99. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
67474 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy revision notes and other study material for 14 years now