Economics (AS & A Level) · May / June 2023 · Paper 13 · Question 15
9708Methods and effects of government intervention in markets
The diagram shows the impact of a government imposing a unit tax on a demerit good. S is the supply curve before the tax and S1 is the supply curve after the tax. What is the after-tax revenue of the firm producing the demerit good?
- A$100
- B$200
- C$300
- D$500
As printed in the paper
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Correct answer: A. $100
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