DP Economics
Question 22M.3.HL.TZ0.2a.ii
| Date | May 2022 | Marks available | [Maximum mark: 2] | Reference code | 22M.3.HL.TZ0.2a.ii |
| Level | HL | Paper | 3 | Time zone | TZ0 |
| Command term | Draw | Question number | a.ii | Adapted from | N/A |
a.ii.
[Maximum mark: 2]
22M.3.HL.TZ0.2a.ii
Taxes on fuel
India is said to have the highest taxes on fuel in the world. At the current market equilibrium, the price of petrol (gasoline) in New Delhi is comprised of the components shown in Table 4 (approximate figures).
Table 4
Figure 2 illustrates the market for petrol in New Delhi. D represents the demand for petrol in millions of litres per day. S + t represents the supply (incorporating the effect of indirect tax) of petrol in millions of litres per day.
Figure 2
(a.ii)
On Figure 2, draw the market supply curve without the indirect taxes for petrol in New Delhi.
[2]
Markscheme
Examiners report
Generally well-answered. A minority of candidates drew the supply curve below the S + t curve but with an incorrect vertical distance between the curves.
