PLEASE REPLY ASAP
please throughly explain:
The aim of the assignment is to critically assess economic theory using a case study. That is, to analyze a real-world event using economic theory and data:
Don’t defend candy tax- instead evaluate the model based on the event (the focal point is the model not the event)
Use data to assess whether or not your dependent variable acts in the way you expect it to
use a case study to back it up and include data
Area of interest: The effect of a “candy tax” on cities
Thesis: One can examine the effect of “candy tax” in cities by stating that since certain states implement a “candy tax”, the demand for producing and consuming candies will be lower for them than the states that are exempt from this tax.his, in turn, will decrease the demand for candy and increase the demand for healthier alternatives.
Independent variable: he price of candy with tax
Dependent variable: the demand for candy
MODEL: the demand for candy based on state sales tax.
Things to include:
-Candy is an elastic good ( if the price increases due to tax, one can choose a healthier alternative like fruit)