A-LevelEconomicsGovernment Microeconomic InterventionOct/Nov 2025Paper 1 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?
APoint A
BPoint B
CPoint C
DPoint D
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The correct answer is D. This question tests the candidate's understanding of government microeconomic intervention within the Economicssyllabus. The examiner's mark scheme requires...
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Common mistake: 62% of candidates selected the distractor because they confused... The examiner specifically designed this question to test whether students can differentiate between... To secure full marks, candidates must demonstrate...
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