A-LevelEconomicsInternational economic issues9708/12 · Oct/Nov 2025 · Q301 Mark

The diagram shows the effect of a government removing the tariff on imports of rice into its country. [Figure 30.1] How would the removal of this tariff affect the consumer surplus and the government's revenue?

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Aconsumer surplus: increases by VUT, government revenue: decreases by WVTX

Bconsumer surplus: increases by VUT, government revenue: decreases by WVQ3Q2

Cconsumer surplus: increases by P₁VUP2, government revenue: decreases by WVTX

Dconsumer surplus: increases by P₁VUP2, government revenue: decreases by WVQ3Q2

✓ Correct answer

C: consumer surplus: increases by P₁VUP2, government revenue: decreases by WVTX

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Topic: International economic issues, A-Level Economics (syllabus 9708). Multiple choice, 1 mark.
Source: A-Level Economics, Oct/Nov 2025 Paper 1 Variant 2, question 30.

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