An indirect tax is introduced on ceramic-tile producers. The market price of ceramic tiles remains unchanged.
What is the most likely effect on producers' selling plans at this price?
They plan to offer the same number of tiles because the market price remains unchanged
They plan to offer fewer tiles because the tax reduces consumers' willingness to buy them
They plan to offer fewer tiles because the tax raises their cost of supplying them
They plan to offer more tiles because the tax makes selling each tile more profitable
81 exam-style questions on OCR GCSE Economics 2.3 Supply, covering 2.3.1 What is supply, 2.3.2 Draw a supply curve using data, 2.3.3 Explain a supply curve, 2.3.4 Shifts and movements of the supply curve, 2.3.5 Causes and consequences of supply changes, 2.3.6 Price elasticity of supply, 2.3.7 Draw supply curves of different elasticity, and 2.3.8 Importance of price elasticity of supply. Each one has a worked solution and a mark scheme showing where the marks go.