Edexcel A-Level Economics AS 1.3.4 4b Incidence of Indirect Taxes on Consumers and Producers Topic Practice

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Question 1

[Maximum number: 1]

The diagram shows the market for a sugar-sweetened drink in Peru. In 2018 Peru's Government imposed an ad valorem tax on sugar-sweetened drinks.

Figure for Question 1 — Edexcel A-Level Economics AS

Which one of the following shows the value of the consumer incidence of the tax?

A

Sol 94500

B

Sol 126000

C

Sol 220500

D

Sol 228000

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