Soft Drinks Industry Levy


In April 2018 the UK government is set to implement the Soft Drinks Industry Levy (SDIL). Using the market model, conduct an economic analysis on the main affected markets pre and post April 2018. Consider the impacts of this policy in both the short run and long run on the main affected markets, (please note the SDIL is tiered).

You should analyse the question specifically from several points of view. Please do not be vague, e.g. use one paragraph to say it is bade for trade with EU country because the tax is increasing. 

Please note that you are expected to conduct an economic analysis using the market model. This means that your analysis must be based on appropriate economic models/concepts covered in this module. Diagrams should be included. Please note stating definitions and general discussions on the policy/policies (for example, going through the pros and cons) does not constitute sufficient economic analysis.

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