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Economics · May / June 2022 · Paper 12 · Question 17

2281Mixed economic system

A government levies a specific tax on the supply of cigarettes. At the same time it starts a campaign to explain the health risks of smoking cigarettes. Which diagram illustrates the effects on the demand and supply of cigarettes?

  1. ADiagram A
  2. BDiagram B
  3. CDiagram C
  4. DDiagram D

As printed in the paper

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Correct answer: C. Diagram C

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