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  • Regulation, Costs, Revenue, Profit, Investment, Consumer welfare, Inflation

Click to read the article below and then answer the questions:

Sunak pressed to impose energy windfall tax

  • Show the impact of a windfall tax on a firm in an imperfect market

  • Using the diagram explain what happens to price profit and output when the windfall tax is imposed

  • Why will the windfall tax harm investment in the energy sector?

John Greenwood, Bromley High School for Girls 

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