A-LevelEconomicsGovernment microeconomic intervention9708/12 · Oct/Nov 2025 · Q121 Mark
The diagram shows the market for a demerit good. The initial equilibrium is at point X. [Figure 12.1] What will be the new equilibrium if the government imposes a unit tax on this demerit good and successfully informs consumers of its harmful effects?
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.
APoint A
BPoint B
CPoint C
DPoint D
✓ Correct answer
D: Point D
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