Clear application of the 4 Step Ace Approach
One of the finest production of a JC1 student with clear application of the 4 Step Ace Approach in explaining how economic tools like subsidy and price ceiling can be used to reduce the high food prices.

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Introduction
Define economic tools

  • Subsidy
  • Price ceiling

A
  • The government can make use of subsidy to reduce the high food prices
  • Price ceiling can be used to reduce the high food prices

C
  • Draw diagram of subsidy
  • Explain how subsidy can be reduced with subsidy
    • Decrease in cost of production
    • Decrease in price of food
  • Draw diagram of price ceiling
  • Explain how price ceiling affects food prices
    • The price of food will be decreased by government
    • There will be decrease in supply and decrease in demand shortage

E
Elaborate the effectiveness of subsidy