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

Maximum and minimum prices — practice question

A fixed tax is charged on every bottle of perfume that is sold. In the diagram, S shows the supply curve before the tax is introduced and St shows the supply curve after the tax. Which area indicates the tax revenue collected by the government?

  • AORWY
  • BPQUT
  • CPRWT
  • DQRWU

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