AI-generated, not reviewedHL only4 marks, command term Calculate
The figures are invented. A diagram shows Country Z's market for sugar, with price ($ per tonne) on the vertical axis and quantity (thousand tonnes per year) on the horizontal axis. The world price is $20. With free trade domestic producers supply 500 and consumers demand 1,500. The government sets an import quota of 400 thousand tonnes. The domestic price rises to $26, where domestic producers supply 800 and consumers demand 1,200. Import licences are given to foreign exporters. (i) Calculate the quota rent received by foreign exporters. [2] (ii) Calculate the change in domestic producers' revenue. [2]
HL Paper 3-style calculation (standalone practice; not an IB question).