Question 20N.3.HL.TZ0.3d.ii
| Date | November 2020 | Marks available | [Maximum mark: 2] | Reference code | 20N.3.HL.TZ0.3d.ii |
| Level | HL | Paper | 3 | Time zone | TZ0 |
| Command term | Calculate | Question number | d.ii | Adapted from | N/A |
Figure 6 illustrates the demand and supply conditions for rice in Country B, where Dd is domestic demand, Sd is domestic supply and Sw is world supply.
Using Figure 6, calculate the consumer surplus and the producer surplus when Country B engages in free trade.
[2]
CS: 0.5 (12 − 4) × 8 = $32 million
OR
32 is sufficient for [1].
NB Neither units nor workings are required.
PS: 0.5 (4 − 1) × 2.5 = $3.75 million
OR
3.75 is sufficient for [1].
NB Neither units nor workings are required.
OFR applies, eg if answer to (i) is $7, then CS: $12.5 million PS: $15 million.
Although many candidates were able to calculate CS and PS correctly, this is still a significant area of concern. Calculation of the relevant areas, using correct units, was a problem for a significant number of candidates.
