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

Maximum and minimum prices — practice question

A tax of a fixed amount is imposed on every bottle of perfume sold. In the diagram, SS shows the supply curve before the tax, while StSt shows the supply curve after the tax. Which area indicates the revenue gained by the government from the tax?

  • AORWY
  • BPQUT
  • CPRWT
  • DQRWU

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