1) Explain how taxation will reduce market failure

2) Explain how at least two alternative methods of reducing market failure would work. (e.g. Total ban on gambling adverts, Introducing a new independent regulator to monitor the gambling companies or increasing tax)

3) Draw diagrams to show how each method of reducing market failure would work.

4) The impact of each method on consumer welfare - consider both positive and negative impacts.

5) The short term vs. long term impact of each method - some methods may have an immediate impact, whereas others may be much more effective in the long term

Could you please just outline the key points? Thanks.