A sugary drinks levy is a specific excise tax imposed on the sale of high-sugar soft drinks, included in the retail price paid by consumers, set at 20 pence per litre.
Draw a supply and demand diagram to show the incidence of this specific sugar tax on consumers and producers.
22 exam-style questions on Edexcel A A Level Economics 1.2.9 Indirect taxes and subsidies. Each one has a worked solution and a mark scheme showing where the marks go.