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Government intervention

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Question 11

The table below shows the demand and supply schedules for a regional local-produce market.

Price (£)Quantity demanded (000s per week)Quantity supplied (000s per week)
20100220
19120200
18140180
17160160
16180140
15200120
14220100
1324080

If the government imposes an indirect tax of £2 per unit on this good, what will the new equilibrium price paid by consumers be?

£15

£16

£17

£18

Government intervention Questions

  1. A Level
  2. /Economics
  3. /Government intervention