Economics (AS & A Level) · May / June 2023 · Paper 11 · Question 12

A specific tax is placed on the sale of bottles of lemonade. In the diagram, S is the supply curve before imposition of the tax and S_t is the supply curve after tax. [diagram: price-quantity axes with demand curve D, supply curves S and S_t, points W, T, U, X] Which distance represents the specific tax on each bottle?

1. AUT
2. BWT
3. CWU
4. DWX

As printed in the paper