A-LevelEconomicsGovernment microeconomic intervention9708/12 · Feb/Mar 2018 · Q151 Mark
The diagram shows the equilibrium price and quantity of good X. [Figure 15.1] The initial market equilibrium is shown by point E. What might cause the market equilibrium to move to point F?
This question uses a diagram from the original paper, which isn't shown here. Open the full paper from the past papers archive to see it.
Adecrease in the costs of producing good X
Bdecrease in the demand for good X
Can increase in the price of a substitute good
Dthe imposition of a specific sales tax on producers of good X
✓ Correct answer
D: the imposition of a specific sales tax on producers of good X
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