BUSS102 Microeconomics: Analyzing Tax Policies and Health Outcomes

This report delves into microeconomic principles, examining the impact of government policies on health outcomes. It analyzes a case study on the Australian government's tax on Alcopops and its effectiveness in reducing teenage binge drinking. The report utilizes demand and supply models to illustrate the burden of the tax and its efficiency. Additionally, it explores the potential benefits of government subsidies for dental care among children and low-income earners. The analysis incorporates economic tools and discusses alternative policy options to address the issues of alcohol-related harm and healthcare access, providing a comprehensive overview of the economic implications of the policies and their effectiveness.

BUSS102 MARKET MICROECONOMICS PRINCIPLES
SESSION 3, 2018
TUTORIAL PRESENTATION: GROUP 5
DUE: WEEK 12 TUTORIAL CLASS

DEMAND AND SUPPLY MODEL
 Increment in the sales will tend to increase
the tax revenue of the government and lead
to a drop in teenage binge drinking

 The increment in the tax structure is not a
viable option as it leads to undue burden on
the company’s operation
 Decline in the tax revenue
 Since, tax rate is higher the income from tax
revenue bound to be lower

BURDEN OF TAX
 Burden of tax was bored by the customers
because the increment in the price was
passed on the customers
 Sole reason why the revenue from taxation
dropped
 Since demand is inelastic owing to the
addictive nature, the burden falls on the
consumers in the form of higher prices.

 Policy of taxation ineffective
 tax policy failed to keep the drinkers at bay
 could not lead to a drop in the sales

POLICY STRATEGIES
 enhance the minimum legal age of drinking
 reducing the commercial, as well as social
access of the youth to alcohol
 reduction of the commercial alcohol
availability
 strong check to the access to alcohol
 effective program will help in preventing the
use of alcohol.

REFERENCES
 Braeutigam, R. (2010) Microeconomics (4th
ed.). Wiley.
 Mankiw N. Gregory, S, & William M. (2011)
Macroeconomics. Canadian ed., 4th ed. New
York: Worth Publishers
 Opocher, A, & Steedman, I. (2009) Input
Price-Input Quantity Relations and the
Numeraire. Cambridge Journal of Economics,
3(2), 937-942
 Mankiw, N.G. & Taylor, M.P. (2011).
Economics (2nd ed) Andover: Cengage
Learning