Question 20N.3.HL.TZ0.e.iv
| Date | November 2020 | Marks available | [Maximum mark: 2] | Reference code | 20N.3.HL.TZ0.e.iv |
| Level | HL | Paper | 3 | Time zone | TZ0 |
| Command term | Calculate | Question number | e.iv | Adapted from | N/A |
Country B imposes a tariff on rice imports, which is illustrated on Figure 7.
Using Figure 7, calculate the welfare loss as a result of Country B imposing the tariff.
[2]
0.5 (1.5 × 1.25) + 0.5(1.5 × 1.5)
Any valid working is sufficient for [1].
= $2.0625 million OR $2.06 million
NB Either answer is acceptable.
An answer of 2.0625 or 2.06 without workings is sufficient for [1].
For full marks to be awarded, the response must provide valid working with correct units. However, superfluous units may be ignored.
OFR does not apply, since there would be a welfare gain if the answer to (d)(i) were $7.
A number of candidates assumed that the two "welfare loss triangles" were of equal area and therefore calculated incorrectly. Stronger candidates were able to provide the correct response (for all of part (e)).
