A government introduces a specific environmental levy on non-renewable electricity generation, set at £15 per megawatt-hour (MWh), which is added to the production costs of energy firms.
Draw a supply and demand diagram to show the incidence of this specific green tax on both consumers and producers of electricity.
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.