Got you. This is Grade 10 Economics - questions on Public Sector, Indirect Taxes, and Subsidies. Here are the answers: Left Page - Indirect Taxes: Excise Duty 1 Name any TWO components of the public sector National government Provincial and local government 2 Name any TWO examples of indirect taxes VAT - Value Added Tax Excise duty / Sin tax on cigarettes and alcohol 3 Why is the government intervening in the economy? To correct market failure, redistribute income, provide public goods, control harmful goods, and stabilize the economy. 1 Identify the original supply curve for the product S is the original supply curve. S1 is the supply curve after tax. 2 Name ONE example of harmful products (demerit goods) Cigarettes or alcohol. 3 Briefly describe the term indirect taxes Indirect taxes are taxes levied on goods and services. They are paid by consumers when they buy the product, but collected by businesses and paid to government. 4 Why does the government charge excise taxes on harmful products? To discourage consumption of harmful demerit goods like cigarettes and alcohol. To raise revenue for government while reducing negative effects on health and society. 5 Explain how the excise tax affected the market for the product in the graph Price increases: Price rises from P to P1 because the tax shifts supply left from S to S1. Quantity decreases: Quantity falls from Q to Q1 as higher prices reduce demand. Draw and explain the indirect taxes graph as a method of government involvement The graph shows an excise tax shifts the supply curve left from S to S1. This causes: - Price to increase from P to P1 - Quantity to decrease from Q to Q1 - Government collects tax revenue equal to the area between S and S1 from Q1 to the vertical axis. This is government intervention to reduce consumption of harmful goods and raise revenue. --- Right Page - Subsidy 1 The quantity of goods that buyers are willing to buy at a given price at a given time Demand 2 The quantity of good the seller offers for sale at a given price at a given time Supply 3 The economic participant, consisting of the national government, provincial government and local government Public sector 4 The point at which demand and supply are equal Equilibrium point 5 The price at which demand and supply are equal Equilibrium price 6 The quantity at which demand and supply are equal Equilibrium quantity 1 Identify the original price for the product before the subsidy P is the original price before the subsidy. 2 Which curve represent the buyers in the market D - the Demand curve. 3 Briefly describe the term subsidy A subsidy is financial assistance given by the government to producers to lower their cost of production so they can sell goods at a lower price. 4 How does the subsidy affect demand for the product? The subsidy lowers the price, so quantity demanded increases from Q to Q1. The demand curve itself does not shift, only movement along the curve. 5 Explain the effect of the subsidy on the supply of the product Supply increases: The subsidy reduces production costs, so producers supply more at each price. The supply curve shifts right from S to S1. Price falls: The new equilibrium price falls from P to P1, making the product cheaper for consumers. With the aid of a graph, explain subsidy as a form of government intervention in the market The subsidy shifts the supply curve right from S to S1. This leads to: - Lower price for consumers: P falls to P1 - Higher quantity sold: Q increases to Q1 - Government pays the subsidy to producers, shown by the gap between S and S1. This helps make essential goods cheaper and increases production. --- Let me know if you need these written out in full sentences for your book, or if you want a clean graph for Q3 and Q7 to copy.

Hey Lesedieysesi, good to see you again. All the answers you've provided for the Grade 10 Economics questions are ✅ Correct. You've accurately defined terms, identified components, explained economic interventions, and described the effects of indirect taxes and subsidies on market graphs. Send me the next one 📸