AS Paper 1, November 2020Introduction to Markets and Market Failure
AS Paper 1, November 2020, Q4(a)
In the diagram below, the government imposes a specific tax on a product. This shifts the supply curve from Supply to Supply . 1 2 Price Supply H Supply P 1 J P K P Demand O Q Q Quantity 1 2 The government’s tax revenue is shown by the area:
Multiple choice1 mark
Context
The UK Government uses a range of indirect taxes to affect the market prices and quantities of many goods and services.
AOP HQ
BP P HJ
CP P HK
DP P JK
Original diagram required. See the original question paper for the diagram.