DP Economics
Question 19N.3.HL.TZ0.e.ii
| Date | November 2019 | Marks available | [Maximum mark: 2] | Reference code | 19N.3.HL.TZ0.e.ii |
| Level | HL | Paper | 3 | Time zone | TZ0 |
| Command term | Draw, Label | Question number | e.ii | Adapted from | N/A |
e.ii.
[Maximum mark: 2]
19N.3.HL.TZ0.e.ii
The market for corn on the island of Nissos is perfectly competitive. The demand and supply for corn in Nissos are given by the functions
where is the quantity of corn demanded per month in millions of kilograms (kg), is the quantity of corn supplied per month in millions of kg and is the price per kg of corn in dollars ($).
Advisors to the government of Nissos suggest setting a price floor.
Draw and label on Figure 1 a curve that illustrates the price floor in Nissos that leads to a monthly surplus of 3 million kg of corn.
[2]
Markscheme
Award [1] for a horizontal line above the equilibrium price.
Award [1] for the line being drawn at $10.
If the line is not labelled a maximum of [1] may be awarded.
OFR applies.
