The abolition of the specialty sugar levy led to an estimated 28% increase in sales during the third quarter at SweetTreats, a regional chain of dessert parlours. The levy was an indirect tax on each sugary dessert sold to customers.
Source: news reports, November 2023
The abolition of the specialty sugar levy can be shown by the:
supply curve of sugary desserts shifting to the left.
supply curve of sugary desserts shifting to the right.
demand curve for sugary desserts shifting to the left.
demand curve for sugary desserts shifting to the right.
256 exam-style questions on AQA A Level Economics 1.3 Price determination in a competitive market, covering 1.3.1 The determinants of the demand for goods and services, 1.3.2 Price, income and cross elasticities of demand, 1.3.3 The determinants of the supply of goods and services, 1.3.4 Price elasticity of supply, 1.3.5 The determination of equilibrium market prices, and 1.3.6 The interrelationship between markets. Each one has a worked solution and a mark scheme showing where the marks go.