◈ Oracle PrepSign Up Free
A-LevelEconomicsGovernment microeconomic intervention9708/12 · Oct/Nov 2025 · 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

C: prices of drinks: increase, price of sugar: decrease

Practise more questions on this topic

Oracle Prep sorts past-paper questions by topic, so you can drill Government microeconomic intervention and see which topics are most likely to come up next.

Sign up free →

About this question

Topic
Government microeconomic intervention, A-Level Economics (syllabus 9708). Multiple choice, 1 mark.
Source
A-Level Economics, Oct/Nov 2025 Paper 1 Variant 2, question 13.

Questions and mark schemes are from past examination papers and remain the copyright of the exam board. How Oracle Prep builds its content

Related Economics questions

Government microeconomic interventionFeb/Mar 20171m

What is the most likely purpose of a government making transfer payments, such as social security benefits, to unempl…

Government microeconomic interventionFeb/Mar 20171m

Which circumstance is not likely to represent a strong case for an industry to be nationalised?

Government microeconomic interventionFeb/Mar 201720m

Explain the difference between public goods and private goods. Consider why profit can be made through the supply of …

Basic economic ideas and resource allocationFeb/Mar 20161m

What confirms that scarcity exists?

Basic economic ideas and resource allocationFeb/Mar 20161m

In 2014, there was an outbreak of ebola, a deadly disease, in West Africa. People obtained information from hospitals…

The price system and the microeconomyFeb/Mar 20161m

A rise in the price of a good is accompanied by an increase in the quantity demanded. What could explain this?

← Browse all past-paper questions

© 2026 Oracle Prep