Question 22M.3.HL.TZ0.2a.iii
| Date | May 2022 | Marks available | [Maximum mark: 2] | Reference code | 22M.3.HL.TZ0.2a.iii |
| Level | HL | Paper | 3 | Time zone | TZ0 |
| Command term | Calculate | Question number | a.iii | Adapted from | N/A |
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
Using Figure 2, calculate the revenue (in rupees per day) collected from the indirect taxes on petrol in New Delhi.
[2]
50 × 500 (million)
Any valid working should be rewarded with [1]
= (RPs) 25 billion (or 25 000 million or 25 000 000 000)
N.B. as rupees is stated in the question, it is not necessary to include it in the response.
An answer of 25 billion (or 25 000 million or 25 000 000 000) without workings is sufficient for [1]
OFR applies provided the S curve is drawn below the S + t curve (i.e. the vertical distance between the curves may be incorrect).
N.B. the symbol 
may be used for the Indian rupee.
For full marks to be awarded the response must provide valid working and include correct units.
Generally well-answered although some candidates omitted “millions” or wrote the answer in full but with an incorrect number of zeros.
