A-LevelEconomicsGovernment microeconomic intervention9708/31 · Oct/Nov 2019 · Q131 Mark

A producer of a good causes pollution. When will a specific tax on the production of the good be most effective in reducing output? A when there is price elastic demand and price elastic supply B when there is price elastic demand and price inelastic supply C when there is price inelastic demand and price elastic supply D when there is price inelastic demand and price inelastic supply

Mark scheme

Marking points from the official mark scheme (Oct/Nov 2019). The mark or mark type is shown in brackets.

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Topic: Government microeconomic intervention, A-Level Economics (syllabus 9708). Structured question, 1 mark.
Source: A-Level Economics, Oct/Nov 2019 Paper 3 Variant 1, question 13.

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