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Question 18N.3.HL.TZ0.a.ii

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Date November 2018 Marks available [Maximum mark: 2] Reference code 18N.3.HL.TZ0.a.ii
Level HL Paper 3 Time zone TZ0
Command term Calculate Question number a.ii Adapted from N/A
a.ii.
[Maximum mark: 2]
18N.3.HL.TZ0.a.ii

Figure 3 illustrates the market for cotton in the country of San Marcus, a small closed economy. Cotton is used as an input in the San Marcus textile industry. Quantity is in thousands of kilograms (kg).

Calculate the social (community) surplus in the market for cotton in San Marcus.

[2]

Markscheme

consumer surplus

( 10 × 50 ) 2 × 1000 = 250 000

producer surplus

( 6 × 50 ) 2 × 1000 = 150 000

social surplus
250 000 + 150 000

Any valid working is sufficient for [1].

= $400 000

OR

( 16 × 50 ) 2 × 1000

Any valid working is sufficient for [1].

= $400 000

An answer of $400 000 or 400 000 (without working) is sufficient for [1]. 

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