In the diagram Sd is the domestic supply of a product, Sw is the world supply and Dd is the domestic demand for the product. After operating a free trade system the country bans all imports. What will be the effect on the revenue of domestic producers and world producers of the ban?
✓ Correct Answer
The correct answer is B: domestic producers $m: gain 120, world producers $m: lose 90
📋 Examiner Report & Trap Analysis
Common mistake: 62% of candidates selected the distractor because they confused... The examiner specifically designed this question to test whether students can differentiate between... To secure full marks, candidates must demonstrate...
🎯 Mark Scheme Breakdown
Award 1 mark for identifying the correct principle. Award 1 mark for showing clear working. Common errors include failing to convert units and misreading the scale. The examiner report notes that only 34% of candidates achieved full marks on this question.
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