Economics 0455 · IGCSE · Price determination

Price determination — practice question

In 2018, the UK government brought in a tax on the production of sugary drinks. How would this change the market for sugary drinks, as illustrated on a demand and supply diagram?

  • Acontraction in demand and shift to the left in supply
  • Bextension in demand and shift to the right in supply
  • Cshift to the left in demand and contraction in supply
  • Dshift to the right in demand and extension in supply

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