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

Maximum and minimum prices — practice question

The diagram illustrates the effect of a unit tax introduced by a government on a good. The initial supply curve is S1, while the supply curve following the unit tax is S2. What is the amount of tax paid by the consumer?

  • A$500
  • B$1000
  • C$1500
  • D$2400

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