AS Paper 1, June 2019Introduction to Markets and Market Failure
AS Paper 1, June 2019, Q4(b)
On the diagram below annotate the effect of a rise in VAT on the market for household energy use.
Short answerAnnotate2 marks
Context
In 2016 the average energy bill per household was £1 070 per year, excluding VAT, an indirect tax charged at 5%.
Original diagram required. See the original question paper for the diagram.