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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. This question tests the candidate's understanding of government microeconomic intervention within the Economicssyllabus. The examiner's mark scheme requires...

📋 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...

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About This A-Level Economics Question

This multiple-choice question appeared in the Cambridge A-Level Economics (9708) Oct/Nov 2025 examination, Paper 1 Variant 2. It tests the topic of Government Microeconomic Intervention and is worth 1 mark.

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