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  2. Economics Edexcel A
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1.2 How markets work

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Question 1

In 2025, an environmental committee recommended the introduction of a 25% indirect tax on 'fast-fashion' garments sold by online-only retailers, aimed at reducing textile waste, carbon emissions, and water pollution.

Evaluate the likely microeconomic effects of introducing such a tax.

Indirect tax to correct a negative externality

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1.2 How markets work Questions

  1. A Level
  2. /Economics
  3. /1.2 How markets work