Economics 0455 · IGCSE · The role of government

The role of government — practice question

The diagram illustrates the demand for, and supply of, plastic bags. The initial equilibrium price is $P$. In what way would the introduction of a unit tax on plastic bags be represented?

  • ADemand would shift to $D_2$.
  • BDemand would shift to $D_3$.
  • CSupply would shift to $S_2$.
  • DSupply would shift to $S_3$.

Worked solution & mark scheme

This 1-mark question has a full step-by-step worked solution and mark scheme.

  • Full mark scheme, point by point
  • Step-by-step worked solution
  • Write your answer & get it marked instantly by AI