Initial ideas
Policy Memo Format and Guidelines
How a policy memo differs from the policy brief: The Policy Memo builds directly on your Policy Brief. In this assignment, you will use economic reasoning, evidence, and visual models to evaluate your three policy options in depth. Your goal is to analyze how each policy option affects supply, demand, equilibrium, and elasticity in your selected market, then make a clear, evidence-based recommendation.
The following is the format and required components for the Policy Memo. Use titles as directed.
(2pts) Heading (at the top of page 1): Do not write “Heading”; set up the heading as follows:
To: [Intended audience or decision-maker, not Mr. Bronish or Mr. Brady!]
From: [Your name(s)]
Date: [Submission date]
Subject: [This can be the title of your policy brief, your driving question, or an updated title for this assignment. Make sure your industry is identified in the subject line.
(5pts)Executive Summary: 4-6 concise sentences totaling no more than 200 words that answer: What is the problem? Why does it matter economically? What options are being considered? What is your recommendation?
(25pts)(Main Body) Policy Options and Economic Analysis: 5 paragraphs of no more than 1250 words. Here is how to structure this section:
Main Body Paragraph 1 – Review and Adjustments
Summarize the three policy options from your Policy Brief.
Confirm whether you are keeping the same options or changing any.
If you made changes, explain why (new data, better feasibility, or unintended effects).
Preview that the next paragraphs will analyze each option using supply, demand, and elasticity.
Main Body Paragraphs 2–4 – Economic Analysis of Each Policy Option
Each policy option gets its own paragraph. For each option:
Summarize the policy briefly.
Explain how the policy affects supply and/or demand in your industry.
Identify the factors or conditions that will shift supply or demand (e.g., input costs, technology, consumer preferences, taxes, or trade policy).
Analyze how these shifts change equilibrium price and quantity.
Include the elasticity value from your AI Code 3 Modeling Session, and using the output from your modeling session, interpret what it means: What does your industry elasticity value tell you about how responsive the market is to price changes?
Support your analysis with evidence, data, and your supply/demand graph for that option.
Cite your AI modeling session where used (see AI Use & Evidence below).
Main Body Paragraph 5 – Why Action Is Necessary
Summarize what your analysis across all three options reveals.
Explain the economic importance or urgency of acting on this issue.
This sets up your final recommendation.
(5 pts) Recommendation: One paragraph of 4-6 sentences totaling no more than 250 words that clearly explains why this option best addresses the issue. Include supporting evidence from the main body of this memo, as well as consideration of the circular flow that this industry supports. Be concise yet specific and confident in your reasoning.
(4 pts) Conclusion: I 1-3 sentence totaling no more than 125 words that restates why your recommendation matters for this industry and the circular flow model it supports.
Appendix (Required Elements):
(9pts) Three supply and demand graphs — one for each policy option.
Each graph must:
Label Price (P) and Quantity (Q) axes.
Show initial curves (S₀, D₀) and shifted curves (S₁, D₁).
Mark E₀ (initial equilibrium) and E₁ (new equilibrium).
Indicate directional changes in price and quantity.
Graphs can be conceptual or based on real data if available.
Each graph should include a short caption (or title) (1–2 sentences) explaining the effect of the policy.
Appendix (Optional Elements):
Additional visuals (data tables, charts, trendlines, or elasticity comparisons) that strengthen your analysis.
AI Use & Evidence (Required Transparency)
Use AI tools according to the AI Code Protocol below.
Code 1 – Brainstorming & Data Discovery:
Optional for reconsidering your driving question (if needed) and identifying data.
Include your brainstorming transcript in your Google Assessment Folder and note in your reference section that any conversations can be found there.
Code 2 – Editing Assistance:
Use the AI writing feedback tool for proofreading and revision feedback only.
Include your brainstorming transcript in your Google Assessment Folder and note in your reference section that any conversations can be found there.
Code 3 – AI Task Completion (Modeling):
REQUIRED Use the AI Supply & Demand modeling tool for supply and demand modeling and elasticity estimation for each policy option.
You must cite AI use in-text where relevant and include MLA-style citations in your Works Cited.
Example in-text citation
(ChatGPT. “Option 2 Supply and Demand Model.” Code 3 Modeling Session, 2025.)
Example Works Cited entry:
ChatGPT. “Option 2 Supply and Demand Model.” AI Modeling Session, 2025. Code 3 Task Completion.
You are responsible for interpreting all AI-generated supporting points (for each option) and the elasticity values and explaining what they mean.
Code 4 – Full AI Writing/Content Creation: Not allowed. Use of Code 4 will result in a zero.