DP Economics
Question 21M.3.HL.TZ0.1g
| Date | May 2021 | Marks available | [Maximum mark: 1] | Reference code | 21M.3.HL.TZ0.1g |
| Level | HL | Paper | 3 | Time zone | TZ0 |
| Command term | Calculate | Question number | g | Adapted from | N/A |
g.
[Maximum mark: 1]
21M.3.HL.TZ0.1g
Figure 2 illustrates Islandia’s demand (D) for and supply (S) of rice.
Figure 2
The government of Islandia wants to reduce the price of rice by 40 % in order to enable low-income households to buy enough rice to meet their needs. The government decides to achieve this by imposing a maximum price.
(g)
Calculate the shortage resulting from the imposition of the maximum price.
[1]
Markscheme
The maximum price = $5 × 0.6 = $3.
At $3, Qd = 300 000, Qs = 100 000, so the shortage = 200 000 kg
An answer of 200 or 200 000 is sufficient for [1].
Examiners report
Generally well-answered.
