Economics 9708 · AS & A Level · Maximum and minimum prices

Maximum and minimum prices — practice question

The diagram illustrates the demand and supply curves for a commodity before and after a particular tax is abolished. What is the tax per unit of output, and what is the price after the tax is removed?

  • Atax per unit 6; price after removal of the tax 6
  • Btax per unit 6; price after removal of the tax 8
  • Ctax per unit 4; price after removal of the tax 6
  • Dtax per unit 4; price after removal of the tax 8

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