Question 21N.3.HL.TZ0.3i
| Date | November 2021 | Marks available | [Maximum mark: 2] | Reference code | 21N.3.HL.TZ0.3i |
| Level | HL | Paper | 3 | Time zone | TZ0 |
| Command term | Calculate | Question number | i | Adapted from | N/A |
Chia seeds are an agricultural good produced in many countries and priced in US dollars (US$).
Figure 1 illustrates the market for chia seeds in a small country called Nofiberland. D is the domestic demand and S is the domestic supply for chia seeds. Chia seeds can be initially imported at the current world price of US$15.00 per kg. Sw is therefore the world supply faced in Nofiberland with free trade. To protect Nofiberland producers, the government decides to impose a US$6.00 tariff on chia seed imports. St is therefore the world supply faced in Nofiberland after the tariff is imposed.
Figure 1
Calculate the total welfare loss resulting from the imposition of the tariff on chia seeds.
[2]
Any valid working is sufficient for [1]. If the response provides a correct calculation of one relevant triangle, then [1] may be awarded.
= $27 million
An answer of $27 million or 27 without any valid working is sufficient for [1].
Most candidates were able to calculate the area of two triangles — although some, in error, assumed that they were congruent.
