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A-LevelEconomicsGovernment Microeconomic InterventionOct/Nov 2025Paper 1 Q131 Mark

To improve the health of people, a government puts a tax on the sale of drinks that contain sugar. What are the likely effects of this tax on both the prices of the drinks that contain sugar and the price of sugar?

Aprices of drinks: decrease, price of sugar: decrease
Bprices of drinks: decrease, price of sugar: increase
Cprices of drinks: increase, price of sugar: decrease
Dprices of drinks: increase, price of sugar: increase

✓ Correct Answer

The correct answer is C: prices of drinks: increase, price of sugar: decrease

📋 Examiner Report & Trap Analysis

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...

🎯 Mark Scheme Breakdown

Award 1 mark for identifying the correct principle. Award 1 mark for showing clear working. Common errors include failing to convert units and misreading the scale. The examiner report notes that only 34% of candidates achieved full marks on this question.

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About This A-Level Economics Question

Topic

This multiple-choice question tests Government Microeconomic Intervention in A-Level Economics (syllabus code 9708). It is worth 1 mark.

Source

This question appeared in the Cambridge A-Level Economics Oct/Nov 2025 examination, Paper 1 Variant 2.

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