A-LevelEconomicsInternational economic issues9708/12 · Feb/Mar 2019 · Q201 Mark

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?

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Adomestic producers $m: gain 120, world producers $m: lose 50

Bdomestic producers $m: gain 120, world producers $m: lose 90

Cdomestic producers $m: gain 160, world producers $m: lose 50

Ddomestic producers $m: gain 160, world producers $m: lose 90

✓ Correct answer

B: domestic producers $m: gain 120, world producers $m: lose 90

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Topic: International economic issues, A-Level Economics (syllabus 9708). Multiple choice, 1 mark.
Source: A-Level Economics, Feb/Mar 2019 Paper 1 Variant 2, question 20.

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